TOKYO, May 22 (Pulse News Wire) – JFE Systems, Inc. (4832.T) rejected a shareholder proposal for an extraordinary dividend at its board meeting held today.
The proposal, submitted by an unnamed individual shareholder holding 568 voting rights (representing 0.05%), was aimed at distributing surplus funds through additional dividends. The company cited several reasons for opposing the proposal. It highlighted its ongoing efforts to expand operations targeting general customers amid a decline in parent company business volume. JFE Systems emphasized its commitment to balancing shareholder returns and future growth, noting that it had already increased dividend payout ratios and planned further investments in organic growth and collaborations with other companies.
Additionally, the company pointed out its strong financial position, with approximately ¥1 trillion in cash reserves as of December 2025 and a high equity ratio of 34%. However, considering the inflationary environment, maintaining excessive internal reserves could be seen as less efficient from a capital management perspective. The proposed extraordinary dividend of ¥50 per share would amount to roughly ¥1.600 billion, which the company believes could be managed through external funding mechanisms without compromising its investment plans. The ordinary dividend for fiscal year-end will be ¥100 per share, comprising ¥70 as regular dividend and ¥30 as extraordinary dividend, totaling ¥157,048,370,000.
The dividend effectiveness date is set for June 30, 2026, with payment beginning on July 21, 2026.
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