Mitsubishi UFJ Financial Group, Inc. | Dislosure of financial risk audit by audit committee assessment at Mitsubishi UFJ Financial Group, Inc.

Status
Filed
AGM date
Previous AGM date
Proposal number
3
Resolution details
Company ticker
8306
Lead filer
Undisclosed filer
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Climate change
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Japan
Resolved clause
Noting the Company’s increasing acute and systemic financial risks due to material issues such as malfeasance
and climate change, and the duties of the Audit Committee to oversee the effectiveness of directors as well as
executive officers, in order to enhance long-term value, the Company shall disclose the following in Audit
Reports:
(i) the Audit Committee’s assessment of the appropriateness of the Company’s strategy, policies and
processes to mitigate financial risks associated with identified material issues (including the
appropriateness of the process and results of reviewing the financial risks to which the Company may be
exposed, both when risk management is properly implemented and when it is inadequate) and the reasons
for the assessment; and,
(ii) the framework, including the criteria for the assessment, for auditing the oversight of the Company’s risk
controls with respect to identified material issues.
Supporting statement
This proposal requests the Company disclose the necessary information in the Audit Report for shareholders
to determine whether the Directors of the Company are effectively monitoring risk.
Shareholders are unable to assess whether the board and its current processes are adequately monitoring
management’s use of risk controls. Given previous cases of malfeasance in the banking sector in Japan,
shareholders have legitimate concerns over the effectiveness of the current board oversight system. This doubt
extends to whether the oversight system for other material risks (such as climate-related financial risks) is
effective.
The Audit Committee’s report for FY2023 identified no issues with the oversight by the Directors, for example.
However, shareholders are not advised of the basis of such an assessment. The Company’s Audit Committee
should disclose the basis of its conclusion, given that they are accountable to shareholders under the
Companies Act and the Corporate Governance Code.
This proposal would improve the corporate governance of the Company and lead to the enhancement of
medium- to long-term corporate value. It would benefit all shareholders, including shareholders who are not
given access to the Directors.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.