Hitachi 2009 Annual Report Download - page 72

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13. LEGAL RESERVE AND RETAINED EARNINGS, AND DIVIDENDS
The Japanese Company Law provides that earnings in an amount equal to 10 percent of appropriations of retained earnings
to be paid as dividends should be appropriated as a capital surplus or a legal reserve until the total of capital surplus and
legal reserve equals 25 percent of stated common stock. In addition to transfer from capital surplus to stated common stock,
either capital surplus or legal reserve may be available for dividends by resolution of the shareholders’ meeting.
Dividends during the years ended March 31, 2009, 2008 and 2007 represent dividends declared during those years.
On March 16, 2009, the Board of Directors decided not to pay the dividend for the second half of the year ended March
31, 2009.
Cash dividends per share for the years ended March 31, 2009, 2008 and 2007 were ¥3.0 ($0.03), ¥6.0 and ¥6.0, respectively,
based on dividends declared with respect to earnings for the periods.
14. TREASURY STOCK
The Japanese Company Law (JCL) allows a company to acquire treasury stock upon shareholders’ approval to the extent
that sufficient distributable funds are available. If the Board of Directors’ authority is stated in the articles of incorporation, a
company is allowed to acquire treasury stock not upon shareholders’ approval but Board of Directors’ approval. Acquisition
of treasury stock is allowed under the Company’s articles of incorporation.
Pursuant to the provisions of the JCL, shareholders may request the company to acquire their shares representing less than
a minimum trading lot as shares less than a minimum trading lot cannot be publicly traded and such a shareholder holding
less than a minimum trading lot cannot exercise a voting right and other shareholders’ rights except as provided in the JCL
or the articles of incorporation. The JCL also states that a shareholder holding shares less than a minimum trading lot may
request the company to sell its treasury stock, if any, to the shareholder up to a minimum trading lot if entitled under the
articles of incorporation. Sale of treasury stock is allowed under the Company’s articles of incorporation.
The changes in treasury stock for the years ended March 31, 2009, 2008 and 2007 are summarized as follows:
Millions of yen
Thousands of
U.S. dollars
Shares Amount Amount
Balance as of March 31, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,281,295 ¥17,950
Acquisition for treasury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,974,117 12,000
Sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,265,158) (748)
Stock exchange for acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,023,820) (3,863)
Balance as of March 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,966,434 25,339
Acquisition for treasury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,358,519 1,145
Sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (597,224) (354)
Balance as of March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,727,729 26,130 $266,633
Acquisition for treasury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,226 858 8,755
Sales of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,253,991) (751) (7,663)
Balance as of March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,973,964 ¥26,237 $267,725
In April 2006, the Board of Directors approved the acquisition of treasury stock up to 6,500,000 shares of the Company’s
common stock for an aggregate acquisition amount not exceeding ¥5,000 million during May 2006. The Company acquired
a total of 6,210,000 shares for ¥4,996 million during the period.
In December 2006, the Board of Directors approved the acquisition of treasury stock up to 30,000,000 shares of the Company’s
common stock for an aggregate acquisition amount not exceeding ¥20,000 million by the end of March 2007. The Company
acquired a total of 7,200,000 shares for ¥5,817 million during the period.
70 Hitachi, Ltd.
Annual Report 2009