The Supreme Court on Friday acquitted three former top executives of the failed Long-Term Credit Bank of Japan, who were indicted for window-dressing the bank's financial statements to conceal massive bad loans and authorizing illegal dividend
payments, overruling the lower courts' guilty verdict.
conveyance and illegal dividend
payments in connection with
on Tuesday corrected its unconsolidated earnings for the past several years and admitted that it had paid some 28 billion yen in illegal dividend
payouts when necessary profits to justify such payouts were lacking.
6 billion yen in damages from 13 former executives, including three former presidents, for losses stemming from alleged illegal dividend
payments and questionable loans.
The bank filed the lawsuits with the Utsunomiya District Court against some 10 former managers, including the former presidents -- Hisao Mukae, Yoshio Yanagita and Shin Iizuka -- claiming they had made illegal dividend
payouts and extended loans that were deemed irrecoverable, according to the regional bank which is based in Utsunomiya, Tochigi Prefecture.
The action was taken as the executives are responsible for negligence of duty and illegal dividend
payments, Kazuhiko Shimokobe said after filing the suit with the Tokyo District Court.
The illegal dividend
payments were deemed to infringe on the Commercial Code.
The RCC believes that the illegal dividend
payments could have been avoided if Ota Showa had implemented an appropriate audit, the sources said.
796 billion yen loss through illegal dividend
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.
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.