(RTTNews) - Japanese automaker Honda Motor Co., Ltd. (HMC: News ) Tuesday stated that its board of directors has decided on a plan for changes in management and board structures. The plan includes reducing the number of directors to twelve from presently twenty.
The plan, which was decided at a board meeting held today, is intended to strengthen the company's management structure amid changes in the economic environment.
The planned changes are subject to shareholders' approval at the general meeting to be held in late June 2011 and a decision at the board meeting to be held immediately thereafter.
According to the company, in 2005, it had implemented an operating officer system to strengthen the execution of regional and on-site operations and to carry out appropriate management decisions. In that system, a structure was established to differentiate the roles between directors and operating officers.
Honda Motor today said it will designate all of the directors who have business execution roles, including the president, as operating officers. In conjunction with these changes, titles such as senior managing, managing, and the like will be attributed to officers within the operating officer system.
Further, the company will elect a member from the operating officers as a candidate for director.
This member will be responsible for deciding matters provided by law and for monitoring and supervising business execution, in order to speed-up and streamline board's decision making. This member will also respond to the requests of shareholders and investors.
As a consequence of these changes, the number of directors will change from twenty to twelve in late June this year. Meanwhile, the company will maintain the number of corporate auditors at five.
In addition, in order to align with the beginning of the business year, the time of assumption of office for operating officers will be changed to April 1. It was late June earlier.
HMC closed Friday's trading at $44.49, up $0.12, on a volume of 496,400 shares.