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68 Seiko Epson Annual Report 2005
11. Shareholders’ equity
The Company’s retained earnings consists of unappropriated retained earnings and legal reserves required by the
Commercial Code of Japan. The retained earnings accumulated by the Company are initially recorded as
unappropriated retained earnings and later transferred to legal reserve upon approval at the shareholders’ meeting.
Under the Commercial Code of Japan, the Company is permitted to transfer to retained earnings the portion of
statutory reserve (additional paid-in capital and legal reserve) in excess of 25% of common stock upon approval at
the shareholders’ meeting. Any transferred portions will be available for dividend distribution. The Company does
not currently make such transfers.
Under the Commercial Code of Japan, the appropriation of retained earnings for a fiscal year is made by
resolution of shareholders at a general meeting to be held within three months after the balance sheet date, and
accordingly such appropriations are recorded at the time of resolution. The Company may pay interim dividends
by resolution of the board of directors once during each fiscal year in accordance with the Commercial Code of
Japan and the Company’s Articles of Incorporation.
For each of the years ended March 31, 2003 and 2004, the Company paid a year-end cash dividend of ¥9 per
share and interim cash dividend of ¥9 per share to the shareholders of record as at the respective period-ends. For
the year ended March 31, 2005, the Company paid a year-end cash dividend of ¥9 ($0.08) per share and interim
cash dividend of ¥13 ($0.12) per share to the shareholders of record as at the respective period-ends.
The proposed appropriation of retained earnings of the Company for the year ended March 31, 2005 approved
at the general shareholders’ meeting, which was held on June 24, 2005, was as follows:
Thousands of
Millions of yen U.S. dollars
Cash dividends at ¥13 per share ¥2,553 $23,773
The Company’s common stock was listed on the First Section of the Tokyo Stock Exchange on June 24, 2003.
As a result of the listing, 44,500,000 shares of common stock were issued by the Company with the aggregate net
proceeds of ¥109,915 million. Of the 44,500,000 shares, 28,305,500 shares of common stock were offered in
Japan and 16,194,500 were offered outside of Japan in an international offering. As a result of this issuance,
common stock and additional paid-in capital increased ¥40,673 million and ¥69,242 million, respectively.
There were 225 shares and 689 shares of treasury stock as at March 31, 2004 and 2005, respectively.