Sharp 2009 Annual Report Download - page 58

8. Contingent Liabilities
respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as
dividends is calculated based on the nonconsolidated financial
statements of the Company in accordance with the Law.
Year end cash dividends are approved by the shareholders
after the end of each fiscal year, and semiannual interim cash
dividends are declared by the Board of Directors after the end
of each interim six-month period. Such dividends are payable
to shareholders of record at the end of each fiscal year or
interim six-month period. In accordance with the Law, final
cash dividends and the related appropriations of retained earn-
ings have not been reflected in the financial statements at the
end of such fiscal year. However, cash dividends per share
shown in the accompanying consolidated statements of oper-
ations reflect dividends applicable to the respective period.
On June 23, 2009, the shareholders approved the declara-
tion of year end cash dividends totaling ¥7,703 million
($79,412 thousand) to shareholders of record as of March 31,
2009, covering the year then ended.
As of March 31, 2009, the Company and its consolidated subsidiaries had contingent liabilities as follows:
Yen
(millions)
U.S. Dollars
(thousands)
2009 2009
Loans guaranteed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥27,351 $281,969
¥27,351 $281,969
The Company and some of its subsidiaries are subject to
the investigations conducted by the Directorate-General for
Competition of the European Commission etc. with respect to
TFT LCD business. In addition, civil lawsuits seeking monetary
damages resulting from the alleged anticompetitive behavior
have been filed in North America against the Company and
some of its subsidiaries. With respect to the investigation
conducted by the United States Department of Justice, the
Company agreed to pay a fine and so on. The Company also
received a cease and desist order and a surcharge payment
order from the Japan Fair Trade Commission.
7. Net Assets and Per Share Data
Under the Japanese Corporate Law (“the Law”), 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 legal earnings reserve and additional paid-in capital
must be set aside as legal earnings reserve or additional paid-
in capital. Legal earnings reserve is included in retained earn-
ings in the accompanying consolidated balance sheets.
As of March 31, 2009, the total amount of legal earnings
reserve and additional paid-in capital exceeded 25% of the
common stock, therefore, no additional provision is required.
Legal earnings reserve and additional paid-in capital may not
be distributed as dividends. By the resolution of shareholders’
meeting, legal earnings reserve and additional paid-in capital may
be transferred to other retained earnings and capital surplus,
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