President of Tohoku Denryoku KK, Nagatsuka Arata (1971), was only responsible to the Board of Directors and the shareholders. However, the only shareholders who could prove their share were the Tohoku Electric Power Employee Shareholding Association (Tohoku Denryoku Jugyoin Mochikabu-kai) which gave every employee an equal tiny share in the company and thus an equal vote in the Shareholding Association. Although their shares had been a small percentage of what had been issued initially, these days the Shareholding Association was in completely control of the company.

This meant that the president and the shareholders were ultimately only concerned with the wellbeing of Tohoku Denryoku and its employees and not with the wellbeing of everyone else: the consumers and other, tiny, companies. This would be an issue in the long run, because without a way for the non-employees to have a say in the matters of Tohoku Denryoku, the de facto authority in a rather large part of Japan, it would be difficult to justify the company's authority.

At a board meeting the Board of Directors declared the official goal and purpose of Tohoku Denryoku Kabushiki Kaisha, which was "To provide electricity and security to all residents of the Tohoku region of the Empire of Japan". As the Empire of Japan was completely absent in Tohoku, the Board of Directors also came forward with the idea of an Advisory Consumers Union (Kankoku-teki Shohisha Kumiai) to represent all the non-employees under the authority of Tohoku Denryoku. The Advisory Consumers Union would allow any Japanese resident over 20 of the traditional Tohoku Region and other prefectures designated as Tohoku Denryoku-adminstrated prefectures to vote for independentent representatives. The Advisory Consumers Union would then be granted three permanent seat on the Board of Directors of Tohoku Denryoku, complementing the existing nine director positions.

The Advisory Consumers Union would become a critical democratic instrument with fifty seats. An important duty assigned to them by the Board of Directors was the drafting of "Company Security Policy", which corresponded to laws in all but name. If adopted by the Board of Directors, those CSPs would then become law insofar as that the exercising authority, namely Tohoku Denryoku, was obligated to act in the fashion of the CSPs. In comparison to the warlords ruling through violence and fear, the Board of Directors hoped that the Advisory Consumers Union's democratic principles would lead people to prefer Tohoku Denryoku over the bandit warlords.