The court stated that, after the defendants' counsel filed its motion to dismiss the first complaint, plaintiff's lead counsel "dropped nearly every serious (and scurrilous) allegation against defendants," such as allegations about conflicts of interest, illegal dividends
and self-dealing by the Company's CEO, Evangelos Pistiolis.
Last month, Sanyo corrected its unconsolidated earnings for the years from fiscal 2000 and admitted that it had paid around 28 billion yen in illegal dividends
when the profits necessary to justify the payments were lacking.
The taxman is increasingly likely to argue that excessive or illegal dividends
should be re-classed as earnings or be repayable to the company," he said.
Presiding Judge Hiromu Kurihara said Mita bears grave responsibility for aggravated breach of trust, bribery and giving illegal dividends
to shareholders after falsifying the firm's earning reports.
-- Directors may be held personally liable to the corporation, or to the corporation's creditors in the event of dissolution or insolvency, for any willful or merely negligent payment of an unlawful dividend.
and believes it is far from clear that the
The allegations include fraudulent conveyance, illegal dividends
and breach of fiduciary duty, all in connection with the spin-off of Vlasic, Swanson, and other product lines and businesses from Campbell's in 1998.
on Tuesday over alleged financial window dressing in 1998 and 1999 to pay illegal dividends
, police sources said.
Chuo Auditor, based in Tokyo, "was remiss in duties it was supposed to fulfill as auditor and allowed (Yamaichi) to pay illegal dividends
in the fiscal period ending March 1997," the receivers said.
and a four-year term for its one-time president for concealing losses of over 200 billion yen and paying illegal dividends
The Tokyo District Court on Tuesday set the bail for three former executives of failed Long-Term Credit Bank of Japan (LTCB) who were indicted last Wednesday on charges of falsifying the bank's loan records and paying illegal dividends
The panel, composed of a core group of seven lawyers recommended by the Japan Federation of Bar Associations, reported it was highly possible that former executives violated the Commercial Code and the Securities and Exchange Law by underreporting bad loans and providing illegal dividends