Daily BriefsESG

Daily Brief ESG: As for the Amount Eligible for Profit Distribution Under the Rules and more

In today’s briefing:

  • As for the Amount Eligible for Profit Distribution Under the Rules, That’s One Thing…


As for the Amount Eligible for Profit Distribution Under the Rules, That’s One Thing…

By Aki Matsumoto

  • Under Companies Act, the amount available for profit distribution is based on parent company profits; however, with increased holding companies, parent companies alone often cannot accurately reflect actual business operations.
  • As an initiative by the company to address the discrepancy between these rules and actual business practices, the use of “reversal of capital reserves” is a commendable approach.
  • It’s certainly true that many companies don’t yet provide sufficient shareholder returns. Meantime, investors want to hear about companies’ investment plans and cash allocation strategies aimed at increasing corporate value.

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