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received not only from directors (excluding directors serving as Audit & Supervisory Committee members) and from employees but also from independent auditors, corporate lawyers, tax accountants, and other specialists. The Company has a system in place to ensure regu-lar meetings with representative directors and venues for important discussions, such as management and strategy meetings, for Audit & Supervisory Committee members to attend and state opinions.3. Basic Policies and Systems for Preventing Relationships with Antisocial ForcesThe Company stands in rm opposition to all antisocial forces and organizations that threaten to disrupt the order and safety of civil society while practicing a strict policy of non-association with such entities. We have made this commitment clearly apparent in the LINTEC Compliance Guidelines and are taking steps to ensure thor-ough awareness with this regard among all directors and employees.We reject any illegitimate requests from antisocial forces and organizations and maintain close collaborative relationships with the police, centers for the removal of criminal organizations, lawyers, and other specialists to combat such requests. Should we be approached by antisocial forces or organizations, we will closely coordinate with such institutions, organizations, lawyers, or other specialists to furnish a quick, organization-wide response.4. Risk Management SystemThe Company has established the Companywide Crisis Management Regulations as well as a risk management system for minimizing the possible impact and damage to corporate value if a major problem arises. It has also implemented and oversees the Information Security Management Rules and the Trade Secret Management Rules for the preservation and management of information. There are also Companywide risk assessments centered on the CSR Management Ofce.5. Limited Liability ContractsIn accordance with Article 427, Paragraph 1 of the Companies Act, the Company has entered into a contract with each of its non-executive directors—outside directors Kazumori Fukushima, Toru Nozawa, Satoshi Ohoka, and Kanako Osawa—that limits liability for compen-sation for damages under Article 423, Paragraph 1 of the Companies Act. Based on this contract, liability for compensation for damages is limited to ¥10 million or the minimum liability amount stipulated by law, whichever is greater.Internal Audits and Audit & Supervisory Committee Audits1. Internal AuditsThe Audit Ofce regularly implements internal audits of divisions, work sites, plants, and afliated subsidiaries in addition to verifying that operational execution processes and results comply with the law and internal regulations. The status of these internal audits is reported when necessary to the Audit & Supervisory Committee, and opinions are exchanged on the results of the audits.2. Audit & Supervisory Committee AuditsThe Company’s Audit & Supervisory Committee comprises four direc-tors serving as Audit & Supervisory Committee members, of whom three are outside directors. While utilizing the internal control system, the Audit & Supervisory Committee cooperates with the Audit Ofce and the independent auditor, receives the necessary reports, and conducts audits of the directors’ business execution through such methods as exchanges of opinions. Each Audit & Supervisory Committee member attends management and other meetings, obtains the information needed for the audits, attends Board of Directors’ meetings as a director, and supervises the directors in the execution of their duties by stating opinions and participating in reso-lutions through their voting rights.Audit & Supervisory Committee members Hiroshi Okada and Toru Nozawa have considerable knowledge of nance and accounting, having gained many years of experience in their respective roles at the Company’s administrative and audit divisions and Nippon Paper Industries Co., Ltd.’s administrative division.Outside DirectorsThe Company has selected Kazumori Fukushima, Toru Nozawa, Satoshi Ohoka, and Kanako Osawa as its four outside directors. With the exception of Kazumori Fukushima, the other three are also Audit & Supervisory Committee members.1. Human, Financial, and Business Relationships and Other Shared Interests between the Outside Directors and the CompanyThere are no particular shared interests between the Company and Kazumori Fukushima, but Nippon Paper Industries Co., Ltd., where he serves as an executive ofcer, is a major trading partner of the Company, which purchased ¥2,145 million worth of raw materials from and sold ¥42 million worth of products to Nippon Paper (both results from the scal year ended March 31, 2017). In addition, Nippon Paper is a major shareholder in the Company; its holding amounted 43LINTEC ANNUAL REPORT 2017