Report to Company Auditors Article 397 If financial auditors detect, during the performance of their duties, misconduct or material facts in violation of laws and regulations or the articles of incorporation in connection with the execution of the duties of the directors, they must report the same to the company auditors without delay.
If it is necessary for the purpose of performing their duties, company auditors may request reports on the financial auditors' audits from the financial auditors.
For the purpose of the application of the provisions of paragraph (1) to a Company with a Board of Company Auditors, "company auditors" in that paragraph is read as "board of company auditors".
For the purpose of application of the provisions of paragraphs (1) and (2) to a Company with an Audit and Supervisory Committee, "company auditor" in paragraph (1) is deemed to be replaced with "Audit and Supervisory Committee" and "company auditor" in paragraph (2) is deemed to be replaced with "Audit and Supervisory Committee Member appointed by the Audit and Supervisory Committee".
For the purpose of the application of the provisions of paragraph (1) and paragraph (2) to a Company with a Nominating Committee, etc., "directors" in paragraph (1) is read as "executive officers or directors", "company auditors" in the same paragraph is read as "audit committee", and "company auditors" in paragraph (2) is read as "committee members of the audit committee who are appointed by the audit committee".
