Basic approach to corporate governance

TIER IV Inc. (Address: Jacom Building, 1-12-10 Kitashinagawa Shinagawa-ku, Tokyo, Japan, the “Company”) is committed to its vision to reimagine intelligent vehicles through the art of open source. Through the development and utilization of Autoware, the open-source software for autonomous driving, the Company aims to expand the possibilities of mobility for people and thereby maximize corporate value.

To achieve this vision, the Company recognizes that enhancing corporate governance by improving the agility, transparency, and soundness of management is one of its most important management priorities. Under appropriate decision-making and oversight by the board of directors, the Company promotes swift execution of operations by executive officers and strives to establish a proper and efficient management framework.

Overview of the corporate governance structure and reasons for its adoption

The Company has established a general meeting of shareholders, board of directors, board of corporate auditors, and independent auditor as its corporate bodies in accordance with the companies act. The Company has adopted the current governance structure based on our belief that it ensures the effectiveness of corporate governance through oversight of business execution by the board of directors and audits of directors’ performance by the board of corporate auditors from an independent standpoint. In addition, the Company enhances audit efficiency through coordination among three types of audits: audits by corporate auditors, accounting audits, and internal audits.

Corporate governance structure