TOKYO, May 29 (Pulse News Wire) – Air Water Inc. (4088.T) announced today its plans to address governance and internal control issues following its designation as a special attention stock by the Tokyo Stock Exchange on May 1, 2026.
The company confirmed that improper accounting practices had occurred within its group, with some involvement from top management and senior executives. Air Water outlined a series of measures aimed at preventing recurrence, including restructuring its management framework and improving internal controls. Key initiatives include monthly communication sessions led by top management to foster a culture of transparency and accountability, enhancing whistleblower protection mechanisms, and conducting comprehensive training programs focused on ethics and compliance.
Additionally, the company revised its board composition to strengthen oversight functions, appointing five external directors out of ten total directors, increasing the ratio of outside directors to more than half. The changes aim to ensure clear separation between executive roles and supervisory duties while reinforcing the audit committee's effectiveness through additional personnel and expertise. Air Water expects to complete its improvement plan and submit a draft report to the Tokyo Stock Exchange’s self-regulatory organization by mid-June 2026, with final submission scheduled for late July.
The company stated that any delays or changes to the timeline would be promptly disclosed.
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