Activities for Sustainable Management Corporate Governance Activities During the Year Ended March 31, 2010 Meetings Held Audit Status (As a rule, consolidated subsidiaries in Japan are audited  once a year, while operating companies outside Japan  are audited every two years.) Board of Directors 15 times Management Meetings 29 times Quarterly Business Performance Review Meetings 4 times Investment and Loan Council 6 times Environmental Strategy Committee 4 times Reorganization Deliberation Council 2 times New Business Deliberation (Acquisition)  Council 0 times Visiting Audit 41 times Outside Directors and Outside Auditors This committee consists of a director of the holding company and members of the operating  companies concerned with environmental strategy. It formulates environmental policies for the  entire Group and supervises and guides the implementation of environmental management  based on the policies. Held quarterly, the committee then reports the most important matters it  has debated to the holding company’s Board of Directors and at Management Meetings. This committee, consisting of directors and members concerned with reorganization, focuses on  all aspects of reorganizing to enhance competitiveness, including early identification of unprofit- able businesses and overhauls of the business structure. It meets twice per year and reports its  conclusions at Management Meetings. This committee consists of directors and members concerned with new business areas. It  debates proposals from the holding company and operating companies. Specifically, this entails  (1) investments when establishing a new company to conduct a new or existing business, and  (2) investments when acquiring an existing business partner of an operating company. Personnel  concerned with these matters from the holding company and operating companies take part in  these discussions. Afterwards, the committee reports to the holding company’s Board of Direc- tors and at Management Meetings. Environmental Strategy  Committee Reorganization Deliberation  Council New Business Deliberation  (Acquisition) Council In the holding company, three of the directors are outside directors. They ensure prompt and  transparent management decisions by providing supervision and advice from an objective view- point and by actively contributing their opinions based on their specialized knowledge. Outside directors Masahiro Takasaki and Tetsuo Shimura attended all 15 meetings of the  Company’s Board of Directors held during the period from April 2009 to March 2010. At these  meetings, both Mr. Takasaki and Mr. Shimura appropriately made statements needed during  deliberation of resolutions and other matters from the standpoint of their deep insight and wide- ranging knowledge of corporate management, based on their extensive experience as managers.  Fumio Sudo was selected and appointed as an outside director at the General Meeting of Share- holders held on June 17, 2010. Outside director Masahiro Takasaki worked for a financial institution in the past, but the  Company believes a certain degree of independence is assured. Outside director Fumio Sudo  was appointed as an independent director of the Company who does not infringe either of the  evaluation standards concerning independence of independent directors and corporate auditors  stipulated by the Tokyo Stock Exchange because management judged there was no risk of a  conflict of interest with ordinary shareholders. Outside Directors JS Group Corporation Annual Report 2010 39