Olympus 2012 Annual Report Download - page 98

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32. RELATED PARTY TRANSACTIONS
Transactions between a related party and subsidiaries of the Company for the years ended March 31, 2012 and 2011 were as follows:
Transaction Outstanding balance
Year ended March 31, 2012 Millions of yen
Thousands of
U.S. dollars Millions of yen
Thousands of
U.S. dollars
Mr. Michael C.Woodford, Director of the Company, Director and Chairman of KeyMed (Medical & Industrial
Equipment) Ltd.
—Loan from KeyMed (Medical & Industrial Equipment) Ltd., a subsidiary of the Company ¥ 25 $ 313 ¥ — $ —
Transaction
Outstanding
balance
Year ended March 31, 2011 Millions of yen
Mr. Michael C.Woodford, Executive Officer of the Company, Director and Chairman of KeyMed (Medical & Industrial Equipment) Ltd.
—Loan from KeyMed (Medical & Industrial Equipment) Ltd., a subsidiary of the Company ¥ 33 ¥ —
Notes : 1. Interest rates of these loans were decided with consideration to market rates.
2. Mr. Michael C.Woodford resigned as a director of the Company on December 1, 2011 and ceased to be related party as of that date.
33. SUBSEQUENT EVENT
On January 3, 2012, Mr. Michael C.Woodford, a former director of the Company, filed the employment tribunal action to the UK Employment Tribunal against the Company, accusing it
of infringing on the UK Employment Rights Act 1996 through such actions as dismissing Mr. Michael C.Woodford unfairly from the position of the Company’s Representative Director,
president and Chief Executive Officer, and for causing unfair losses to him.
The Company reached a settlement with Mr. Woodford on May 29, 2012 and this was approved at the board of directors’ meeting held on June 8, 2012.
Following the settlement, the Company will pay GBP 10 million (approximately ¥1,200 million or $15,000 thousand) as a settlement payment which will be charged to income
for the year ending March 31, 2013.
34. SUPPLEMENTAL INFORMATION
Following the Company’s announcement on November 8, 2011 concerning its postponing of recognition of losses on securities investments, etc., investigations by domestic and
overseas investigative authorities, supervisory bodies and other public bodies are currently being conducted related to the Company and its subsidiaries. The consolidated financial
statements may be amended if any important matter comes to light in such investigations in the future.
Furthermore, as a result of inappropriate financial reporting by the Company, cases under public prosecution for violation of the Securities and Exchange Law and the Financial
Instruments and Exchange Act against the Company are currently pending in the Tokyo District Court. Shareholders of the Company have also filed a lawsuit against the Company as a
result of inappropriate financial reporting by the Company, and there is a risk that various shareholders and shareholder groups of the Company may claim damages or file lawsuits
against the Company for a similar reason.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OLYMPUS 󱚈 Annual Report 2012
96