Kansai Paint : Notice of Transition to Company with an Audit and Supervisory Committee

Notice of Transition to Company with an Audit and Supervisory Committee

Kansai Paint Co., Ltd. (the "Company") resolved to transition to a company with an audit and supervisory committee, subject to approval at the 160th Ordinary General Meeting of Shareholders scheduled to be held in June 2024.

1. Reason for transfer

Our company aims to transform into a ``truly global company'' by promoting growth strategies and strengthening our management foundation. In order to respond flexibly and quickly to the ever-changing business environment and continuously improve corporate value, we have decided to transition to a company with an audit and supervisory committee for the following purposes.

(1) Strengthening the supervisory function of the board of directors

Audit and Supervisory Committee members, who are responsible for auditing the execution of duties by directors, will strengthen the supervisory function of the Company's Board of Directors by participating in deliberations and exercising voting rights as directors at the Board of Directors meetings.

(2) Speeding up decision-making and business execution

By delegating the Board of Directors' decision-making authority for business execution to directors, it will be possible to further speed up the Company's management decision-making and execution under the appropriate supervision of the Board of Directors.

(3) Improving management transparency

The Audit and Supervisory Committee, of which the majority of members are outside directors, is responsible for auditing and supervising the legality and appropriateness of business execution, allowing the Company to achieve more transparent management and increase the value of its domestic and international stakeholders.

2. Timing of the transition

At the 160th Ordinary General Meeting of Shareholders scheduled to be held in June 2024, related proposals such as changes to the articles of incorporation necessary for the transition will be approved, and we plan to transition to a company with an audit and supervisory committee.

3. Others

We will announce the details of the changes to the articles of incorporation in connection with this matter as soon as they are determined. In addition, the personnel affairs of officers, etc. are separately disclosed in today's "Notice of Change of Director, Executive Officer and Audit & Supervisory Board Members".