TOKYO, Mar 26 (Pulse News Wire) – Shinto Holdings,inc. (2776.T) announced today that its board of directors has resolved to reduce capital reserves and dispose of surplus funds.
These actions will be presented for approval at the upcoming 42nd regular shareholders' meeting scheduled for April 24, 2026. The purpose of reducing capital reserves and disposing of surplus funds is to address accumulated losses and enhance the company's financial health while ensuring flexibility and agility in future capital policies. Specifically, the company plans to decrease its capital reserve amount by ¥4.658 billion out of ¥4.972 billion, leaving a remaining balance of ¥314.3 million. Additionally, the company intends to shift the entire reduced capital reserve amount to other capital surplus according to Article 448(1) of the Companies Act. Regarding the disposal of surplus funds, the company will reduce other capital surplus by ¥4.658 billion and increase carried-forward profit surplus by ¥4.658 billion. Similarly, separate reserve funds will be decreased by ¥2.105 billion and increased in carried-forward profit surplus by ¥2.105 billion.
Both disposals will take effect contingent upon the resolution being approved at the shareholders' meeting on April 24, 2026. The schedule for these resolutions includes the board decision, and the anticipated shareholders' meeting on April 24, 2026. The effective date for these changes is also set for April 24, 2026. Notably, due to meeting the conditions outlined in Article 449(1)(ii) of the Companies Act, creditor objection procedures are unnecessary for this action. Looking ahead, SHINTO Holdings emphasizes that these adjustments within the equity section will not impact the company’s total net assets or earnings. Approval from the shareholders’ meeting remains a prerequisite for implementation.
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