TOKYO, May 19 (Pulse News Wire) – Kaihan CO.,LTD. (3133.T) resolved at its board meeting held on May 19 to propose changes to its articles of incorporation at its 23rd annual shareholders' general meeting scheduled for June 26, 2026.
The proposed amendments aim to enhance the role of the accounting auditor by introducing a new clause that would allow the board of directors to exempt auditors from liability within statutory limits if they act in good faith without gross negligence. Additionally, the company plans to enter into agreements with auditors limiting their liability for damages arising from dereliction of duty up to the amount prescribed by law.
Under the revised articles, which will take effect on June 26, 2026, the day of the shareholders' meeting, the company's governance structure will include provisions for auditor exemption and liability limitation. These changes are intended to ensure that auditors can perform their duties effectively while providing legal safeguards against undue risk exposure.
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