Alpine 2008 Annual Report Download - page 27

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27
8. Net assets
The Japanese Corporate Law (“the Law”) became effective on May 1, 2006, replacing the Japanese Commercial Code (“the Code”). The Law is
generally applicable to events and transactions occurring after April 30, 2006 and for fiscal years ending after that date.
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, a company
may, by a resolution of the Board of Directors, designate an amount not exceeding one-half of the price of the new shares as additional paid-in
capital, which is included in capital surplus.
Under the Law, in cases where a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or the excess, if any,
of 25% of common stock over the total of additional paid-in-capital and legal earnings reserve must be set aside as additional paid-in-capital or legal
earnings reserve. Legal earnings reserve is included in retained earnings in the accompanying consolidated balance sheets.
Under the Code, companies were required to set aside an amount equal to at least 10% of the aggregate amount of cash dividends and other cash
appropriations as legal earnings reserve until the total of legal earnings reserve and additional paid-in capital equaled 25% of common stock.
Under the Code, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit by a resolution of the shareholders’
meeting or could be capitalized by a resolution of the Board of Directors. Under the Law, both of these appropriations generally require a resolution of
the shareholders’ meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Code, however, on condition that the total amount
of legal earnings reserve and additional paid-in capital remained equal to or exceeded 25% of common stock, they were available for distribution by
resolution of the shareholders’ meeting. Under the Law, all additional paid-in-capital and all legal earnings reserve may be transferred to other capital
surplus and retained earnings, respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the
Company in accordance with Japanese laws and regulations.
At the annual shareholders’ meeting held on June 25, 2008, the shareholders approved cash dividends amounting to ¥1,046 million ($10,440
thousand). Such appropriations have not been accrued in the consolidated financial statements as of March 31, 2008. Such appropriations are
recognized in the period in which they are approved by the shareholders.
9. Non-Cash Transaction
There was no conversion of unsecured domestic convertible debentures in 2008 and 2007. As a result of conversion of unsecured domestic convertible
debentures, common stock of the Company was increased by ¥5,561 million in 2006.