Octopus Dividend - Takohaito

Japanese: 蛸配当 - たこはいとう

When a company pays out dividends even though it does not have any distributable profits. Under the Companies Act, this is called an illegal dividend. It is often abbreviated to "takohai." This is usually done by overvaluing assets and undervaluing liabilities. Such actions are considered invalid, and the company can demand repayment from shareholders and employees, and the company's creditors can also demand repayment from the company. Directors who submit a dividend proposal are also liable for indemnification and will be subject to criminal punishment. → Window dressing

Source : Heibonsha Encyclopedia About MyPedia Information

Japanese:

会社が，配当可能利益がないのに利益配当をすること。会社法上は違法配当という。〈たこ配〉と略すことが多い。ふつう資産の過大評価，負債の過小評価によって行われる。このような行為は無効とされ，会社は株主・社員にその返還を，会社債権者も会社への返還を請求できる。配当議案を提出した取締役も填補弁償責任を負い，刑罰を受ける。→粉飾決算

出典　株式会社平凡社百科事典マイペディアについて　情報

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