Sharp 2005 Annual Report Download - page 46

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SHARP ANNUAL REPORT 200541
8. Contingent Liabilities
As of March 31, 2005, the Company and its consolidated subsidiaries had contingent liabilities as follows:
Loans guaranteed.........................................................................................................................
Notes discounted.........................................................................................................................
$ 92,179
5,047
$ 97,226
¥ 9,771
535
¥ 10,306
20052005
Yen
(millions) U.S. Dollars
(thousands)
The Japanese Commercial Code provides that at least
one-half of the proceeds from shares issued be included in
common stock and the remaining amount of the proceeds be
accounted for as additional paid-in capital, which is
included in capital surplus.
T
he Company used its treasury stock in connection with
the conversion of bonds for the year ended March 31,
2005. The difference of carrying values of the bonds
converted and treasury stocks provided was included in
capital surplus.
The Code provides that an amount equivalent to at least
10% of cash dividends paid and other cash outlays shall be
appropriated and set aside as legal reserve until the total
amount of legal reserve and additional paid-in capital equals
25% of the stated capital.
As of March 31, 2005, the total amount of legal reserve
and additional paid-in capital exceeded 25% of the stated
capital and, therefore, no additional provision is required.
On condition that the total amount of legal reserve and
additional paid-in capital remains being equal to or
exceeding 25% of the stated capital, they are available for
distribution by the resolution of the shareholders’ meeting.
Legal reserve is included in retained earnings.
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 Code, final cash dividends and
the related appropriations of retained earnings 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 income reflect
dividends applicable to the respective period.
On June 23, 2005, the shareholders approved the
declaration of year end cash dividends totaling ¥10,910 million
($102,925 thousand) to shareholders of record as of March
31, 2005, covering the year then ended.
On June 24, 2004, the Ordinary General Meeting of
Shareholders passed a resolution on modifying the articles
of incorporation to allow the Company to purchase its
outstanding shares upon approval of the Board of Directors
in conformity with Article 211-3 of the Japanese
Commercial Code.
7. Shareholders’ Equity and Per Share Data