Along with their earnings statement Nintendo released on the 27th of April, They also released information about redoing their corporate structure to a more western style corporate model, instead of the traditional Japanese model they have always been. Below you can see the information that Nintendo release here.
Notice Regarding Transition to a Company with Audit and Supervisory Committee
and Introduction of Executive Officer System
Nintendo Co., Ltd. (the “Company”) hereby announces that, at the meeting of the Board of Directors held on April 27, 2016, it resolved to plan to transition to a Company with Audit and Supervisory Committee and introduce an Executive Officer System.
The transition to a Company with Audit and Supervisory Committee is subject to the approval of the 76th Annual General Meeting of Shareholders scheduled to be held on June 29, 2016.
1. Company with Audit and Supervisory Committee
(1) Reason for Transition
By establishing an Audit and Supervisory Committee which consists of a majority of outside directors,
the Company aims to strengthen the audit and supervisory functions of the Board of Directors and
further promote corporate governance.
(2) Time of Transition
The Company plans to transition to a Company with Audit and Supervisory Committee upon
receiving approval for the required amendments to the Articles of Incorporation at the 76th Annual
General Meeting of Shareholders scheduled to be held in June 29, 2016.
2. Executive Officer System
(1) Reason for Introduction
By separating the management decision-making and supervisory functions from the execution of
operations and accelerating the delegation of authority to execute operations, the Company aims to
clarify the responsibility for the execution of operations and establish a more flexible management
structure which can appropriately and swiftly respond to the rapidly changing business environment.
(2) Outline of System
– Executive Officers will be appointed by the resolution of the Board of Directors.
– A Director may act concurrently as an Executive Officer.
– Executive Officers will hold their office for one year and may be reappointed.
(3) Time of Introduction
The Company plans to introduce the Executive Officer System concurrently with the transition to a
Company with Audit and Supervisory Committee.
3. Other Information
Please refer to the Consolidated Results for the Years Ended March 31, 2016 released today for the
executive appointment after the transition to a Company with Audit and Supervisory Committee and
introduction of the Executive Officer System.
The content of the amendments to the Articles of Incorporation will be announced as soon as
What does this mean for Nintendo, and their future? Well, it simpler terms, it means that Nintendo will have an independent board of directors with members from outside the company, to oversee company operations, and will introduce more corporate positions within the company. It seems that the aim of this restructure is to distribute the tree of power from a few individuals to a full supervisory committee.
Will this affect their future releases? This is yet to be seen, as this restructure is yet to be approved by the board of directors will happen in June. This looks to be a good thing company wise for Nintendo, and we will bring you more information as we receive it. Be sure to follow us on Facebook so you can get the latest stories about this, and so much more from nuGame Network.