Treasury stock - Jikokabushiki

Japanese: 自己株式 - じこかぶしき

Treasury stock held by a joint-stock company (Article 113, Paragraph 4 of the Companies Act). When a company acquires shares issued by itself, the resulting stocks become treasury stock. The acquisition and holding of treasury stock was prohibited in principle from the policy viewpoints of protecting the company's creditors (similar to the refund of capital contributions), equality among shareholders (risk of inequality in acquisition methods and prices), fairness of corporate control (risk of being used to strengthen the position of the current management), and fairness of stock trading (risk of being used for market manipulation and insider trading). However, there has been a growing tendency to allow exceptions, and the Commercial Code was revised in 2001 (Heisei 13) to allow acquisition by resolution of the regular general meeting of shareholders regardless of the purpose under certain restrictions. The Commercial Code was revised in October 2003 to establish a system for acquisition by resolution of the board of directors based on the authorization of the articles of incorporation. The reasons for the significant relaxation of regulations include: (1) the promotion of flexible organizational restructuring (mergers, company splits, etc.) using treasury stock; (2) the ability to adjust the number of shares circulating in the market by acquiring treasury stock and to stabilize the stock market by serving as a receptacle for sales to dissolve cross-held shares; and (3) if a company is able to acquire its shares when major shareholders or others wish to dispose of their shares, it can serve as a defensive measure against hostile takeovers.

[Toda Shuzo and Fukuhara Norihiko]

When treasury stock can be acquired

The Companies Act lists the following cases in which a company can acquire its own shares (Article 155 of the Companies Act): (1) Acquisition of shares with acquisition clauses, (2) Acquisition of shares with transfer restrictions, (3) Acquisition based on a resolution of the general meeting of shareholders, etc., (4) Acquisition of shares with acquisition rights, (5) Acquisition of shares with all acquisition clauses, (6) Acquisition based on a request to sell to a shareholder, etc., (7) Purchase of shares less than one unit, (8) Purchase of shares from shareholders whose whereabouts are unknown, (9) Purchase through a procedure for processing fractional shares, (10) Acquisition of shares held by a company when taking over the entire business of another company, (11) Acquisition of shares from a company that disappears after a merger, (12) Acquisition of shares from a company that is splitting up through an absorption-type division, and (13) Other cases specified by the Ministry of Justice Ordinance. In other words, Article 155 of the Companies Act lists "almost all cases in which a company acquires its own shares." However, what is generally discussed as "treasury stock acquisition" is (3) "acquisition based on a resolution of the general shareholders' meeting, etc.", which is referred to in the text as "acquisition based on an agreement with shareholders" (Articles 156 to 165 of the same law). Note that only (3) is subject to the acquisition procedure restrictions explained below (Article 156, paragraph 2 of the same law), but all of (1) to (13) are subject to the financial resource restrictions for treasury stock acquisition.

[Shuzo Toda and Norihiko Fukuhara]

Regulations on acquisition procedures

[1] Acquisitions that give all shareholders an opportunity to apply In an ordinary resolution of the general shareholders' meeting, (1) the number of shares to be acquired, (2) the acquisition price, and (3) the acquisition period are decided (Article 156, Paragraph 1 of the Companies Act) and the acquisition is authorized. In a company whose articles of incorporation provide that the distribution of surplus funds is the authority of the board of directors (Article 459, Paragraph 1, Items 1 and 2 of the Companies Act), this decision resolution can be made by the board of directors. Then, within the scope authorized by the general meeting resolution, the company decides to acquire its own shares each time (Article 157, Paragraph 1 of the Companies Act). In a company with a board of directors, this acquisition decision is made by a board of directors resolution (Article 157, Paragraph 2 of the Companies Act). A company acquires its own shares in response to applications from shareholders, but if the number of applications is large, the acquisition is made in proportion to the number of applications from each shareholder (Article 159 of the Companies Act).

[2] Acquisition of treasury stock for a fee from a specific shareholder The authorizing resolution for the acquisition of treasury stock for a fee from a specific shareholder is made by a special resolution of the general shareholders meeting (Article 156, Paragraph 1, Article 160, Paragraph 1, Article 309, Paragraph 2, Item 2 of the ILC). Since acquiring treasury stock only from specific shareholders may violate the equality of shareholders, the procedure is made stricter by requiring a special resolution. Furthermore, each acquisition of treasury stock is the same as in [1] (Article 157 of the ILC). However, shareholders other than the specific shareholder are also granted the right to request that the company become a seller (seller's additional claim right; Articles 160, Paragraphs 2 and 3, Article 161 of the ILC).

[3] Acquisition through market transactions and tender offers When acquiring treasury stock through market transactions and tender offers, the acquisition can be made simply by passing a resolution to decide on the acquisition of treasury stock under Article 156 of the Companies Act, and the actual acquisition resolution required in [1] and [2] is not required (Article 165, Paragraph 1 of the same Act). Since market transactions and tender offers are less likely to result in inequality among shareholders, the acquisition requirements have been relaxed. In addition, a company with a board of directors may, pursuant to the provisions of its articles of incorporation, decide to acquire treasury stock through market transactions and tender offers by a board of directors resolution (Article 165, Paragraphs 2 and 3 of the same Act).

[Shuzo Toda and Norihiko Fukuhara]

Financial Restrictions

Under the Companies Act, this is regulated uniformly as a surplus distribution regulation together with surplus dividends (Article 461, Paragraph 1, Items 2 and 3 of the Companies Act). Therefore, the financial resources for acquiring treasury stock must not exceed the distributable amount.

[Shuzo Toda and Norihiko Fukuhara]

Holding/cancellation

Companies are not required to provide a reason for holding the acquired treasury stock, nor are they obligated to cancel it. This is why the relaxation of regulations on treasury stock acquisitions following the 2001 amendment is referred to as the "lifting of the ban on treasury stock."

[Toda Shuzo and Fukuhara Norihiko]

"Easy-to-understand Q&A on the Practical Treatment of Treasury Stock: Key Points and Solutions in Legal, Accounting, and Tax Affairs" by Masanori Arita, Toshio Kaneko, and Akihiko Takahashi (Chuo Keizaisha, 2007)

[Reference item] | Stocks | Corporation

Source: Shogakukan Encyclopedia Nipponica About Encyclopedia Nipponica Information | Legend

Japanese:

株式会社が有する自己の株式（会社法113条4項）。会社が自社の発行した株式を取得すると、その結果、自己株式となる。自己株式の取得と保有は、会社債権者保護（出資の払戻しと同視）、株主平等（取得方法・価格に不平等をきたすおそれ）、会社支配の公正（現経営陣の地位強化策に利用されるおそれ）、株式取引の公正（相場操縦、インサイダー取引として利用されるおそれ）という政策的観点から、従来は、原則的に禁止されていたが、その後、例外的許容を増やす傾向を強め、2001年（平成13）の商法改正では、一定の規制のもとで目的にかかわらず定時株主総会の決議による取得が可能となった。2003年10月の商法改正では、定款授権に基づく取締役会決議による取得制度が設けられた。規制が大きく緩和された理由として、(1)自己株式を用いた機動的な組織再編（合併、会社分割など）の促進、(2)自己株式を取得することにより市場に流通する株式数を調整し、また、持合株式の解消売りの受け皿として、株式市場の安定を図ることができる、(3)大株主などが株式を処分する場合に、会社が取得することができれば、敵対的買収者に対する防衛手段となることなどがあげられる。

［戸田修三・福原紀彦］

自己株式を取得できる場合

会社法において自己株式を取得できる場合としてあげられているのは、以下のとおりである（会社法155条）。(1)取得条項付株式の取得、(2)譲渡制限株式の取得、(3)株主総会決議等に基づく取得、(4)取得請求権付株式の取得、(5)全部取得条項付株式の取得、(6)株式相続人等への売渡請求に基づく取得、(7)単元未満株式の買取り、(8)所在不明株主の株式の買取り、(9)端数処理手続での買取り、(10)他の会社の全部の事業を譲り受ける場合の同会社が有する株式の取得、(11)合併後消滅会社からの株式の承継取得、(12)吸収分割会社からの株式の承継取得、(13)その他法務省令で定める場合。すなわち、会社法155条では、会社が「およそ自社の株式を取得する場合すべて」を列挙している。ただ、一般的に「自己株式取得」として議論されているのは(3)の「株主総会決議等に基づく取得」であり、条文上ではこれを「株主との合意に基づく取得」とよんでいる（同法156条～165条）。なお、下記で説明する取得手続規制に服するのは(3)だけである（同法156条2項）が、自己株式取得の財源規制には(1)～(13)すべての場合が服する。

［戸田修三・福原紀彦］

取得手続規制

〔1〕すべての株主に申込みの機会を与える取得　株主総会普通決議において、(1)取得株式数、(2)取得対価、(3)取得期間を決定して（会社法156条1項）、取得の授権を行う。なお、剰余金の分配を取締役会の権限とする旨の定款の定めのある（同法459条1項1号・2項）会社では、この決定決議は取締役会で行うことができる。そして、前記総会決議で授権された範囲内で、会社はそのつど、自己株式取得を決定する（同法157条1項）。なお、この取得決定は、取締役会設置会社では取締役会決議で行う（同法157条2項）。会社は株主からの申込みに応じて自己株式を取得するが、申込み数が多いときには各株主の申込み数に応じて案分で取得する（同法159条）。

〔2〕特定の株主からの有償取得　特定の株主から自己株式を有償取得する場合の授権決議は株主総会の特別決議で行う（同法156条1項、160条1項、309条2項2号）。特定の株主だけから自己株式を取得すると株主平等に反するおそれがあるために、特別決議を要求して手続を厳格化している。そして、そのつどの自己株式取得は、〔1〕と同様である（同法157条）。ただ、その特定の株主以外の株主にも、自らも売主となるように会社に請求できる権利を認めている（売主追加請求権。同法160条2項・3項、161条）。

〔3〕市場取引・公開買付による取得　市場取引・公開買付によって自己株式を取得する場合には、会社法156条の自己株式取得の決定決議を行うだけで取得することができ、〔1〕〔2〕で要求された実際の取得決議は不要である（同法165条1項）。市場取引・公開買付では株主間の不平等がおこりにくいために、取得要件を緩和した。また、取締役会設置会社は、定款の定めにより、市場取引・公開買付による自己株式取得を取締役会決議で決定することができる（同法165条2項・3項）。

［戸田修三・福原紀彦］