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44LINTEC ANNUAL REPORT 20182. The Company’s Basic Way of Thinking with Regard to the Independence of Outside DirectorsThe Company does not have its own set standards and policies with regard to the independence of outside directors and refers instead to the standards stipulated by TSE. Since appointment is based on a request from the Company, we recognize that independence from management is to be ensured.3. Outside Directors’ Supervision of Directors’ Execution of Duties and Internal Auditing, Mutual Cooperation with Audit & Supervisory Committee Audits and Accounting Audits, and Relationship with the Internal Control DivisionIn addition to attending Board of Directors’ meetings and making necessary and effective remarks as appropriate during agenda deliberations, outside directors cooperate with the internal audit division and the independent auditor as well as oversee directors in the execution of their duties.Remuneration of Corporate Officers1. Total Remuneration by Corporate Officer TypeCorporate officer typeTotalremuneration(Millions of yen)Total remuneration by type (Millions of yen)Number of people receiving remunerationBasicremunerationStockoptionsBonusesDirectors (excluding Audit & Supervisory Committee members and outside directors)451338219013Directors (Audit & Supervisory Committee members)(excluding outside directors)1919——2Outside officers2020——52. Policy Regarding Decisions on Amounts of Director Remuneration • Remuneration of directors (excluding Audit & Supervisory Committee members)This consists of the following.(1) Basic remuneration• Comprising a fixed amount determined based on rank as well as Outside Directors1. 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.NameHuman, Financial, and Business Relationships and Other Shared Interests between the Outside Directors and the CompanyReason for AppointmentKazumori FukushimaThere are no particular shared interests between the Company and Kazumori Fukushima, but Nippon Paper Industries Co., Ltd., where he serves as a managing executive officer, is a major trading partner of the Company, which purchased ¥2,197 million worth of raw materials from and sold ¥21 million worth of products to Nippon Paper (both results from the fiscal year ended March 31, 2018). In addition, Nippon Paper is a major shareholder in the Company; its holding amounted to 21,737,792 shares (30.12% of the total number of Company shares outstanding excluding treasury stock) on March 31, 2018.By utilizing knowledge and experience from his directorship experience at Nippon Paper Industries Co., Ltd., and his many years of business experience in this company’s production and sales divisions, Kazumori Fukushima is able to strengthen the Company’s Board of Directors’ supervisory function. Therefore, he has been appointed as an outside director.Toru NozawaThere are no particular shared interests between the Company and Toru Nozawa, but Nippon Paper Industries Co., Ltd., where he serves as a director and a management executive officer, is a major trading partner of the Company, which purchased ¥2,197 million worth of raw materials from and sold ¥21 million worth of products to Nippon Paper (both results from the fiscal year ended March 31, 2018). In addition, Nippon Paper is a major shareholder in the Company; its holding amounted to 21,737,792 shares (30.12% of the total number of Company shares outstanding excluding treasury stock) on March 31, 2018.By utilizing knowledge and experience from his directorship experience at Nippon Paper Industries Co., Ltd., and his many years of business experi-ence in this company’s administrative divisions, Toru Nozawa is able to strengthen the audit and supervisory functions of the Company’s Board of Directors. Therefore, he has been appointed as a director serving as an Audit & Supervisory Committee member.Satoshi OhokaThere are no particular shared interests between the Company and Satoshi Ohoka.By utilizing his long years of policy-based finance experience, his rich international experience, his specialist academic experience, and his knowledge and experience gained as an outside director in industries different to that of the Company, Satoshi Ohoka is able to strengthen the audit and supervisory functions of the Company’s Board of Directors. Therefore, he has been appointed as a director serving as an Audit & Supervisory Committee member. He is also designated as an independent director based on the criteria stipulated by Tokyo Stock Exchange, Inc. (TSE).Kanako OsawaThere are no particular shared interests between the Company and Kanako Osawa.By utilizing her specialist expertise and extensive knowledge gained as an attorney, along with the knowledge and experience gained through her career in corporate legal affairs both at home and abroad, Kanako Osawa is able to strengthen the audit and supervisory functions of the Company’s Board of Directors. Therefore, she has been appointed as a director serving as an Audit & Supervisory Committee member. She is also desig-nated as an independent director based on the criteria stipulated by TSE.THE BASE THAT SUPPORTS GROWTHGovernance