In order to enforce major transformation of its management policy toward the reform of business model including withdrawal from nuclear power generation, ensuring safety, separation of power generation and power transmission, and large-scale introduction of renewable energy, it is necessary for the Company to drastically reduce costs and improve the flexibility of management. In addition, nuclear power generation is fraught with a major management risk as an unstable power source with operations depending on judicial decisions under an undecided national responsibility system for nuclear power generation, producing a situation which requires a higher level of management decisions. Therefore, the Company should actively appoint external human resources who are well versed in management challenges confronting the Company as Directors. Moreover, in the incident of receiving of cash and gifts by executives, etc. from a former Deputy Mayor of the town of Takahama, Fukui Prefecture, corporate governance became dysfunctional, such as the Board of Directors and the Audit & Supervisory Board not fully functioning. Therefore, in order to improve the Board of Directors’ management supervisory function and increase the objectivity and transparency of management, a majority of the Directors should be Outside Directors and such content should be permanently stated in the Articles of Incorporation.