Press Releases（Archive）
Notice Regarding Stock Split and Adoption of the Trading Lot System
East Japan Railway Company
April 28, 2008
In a meeting on April 28, 2008, the Board of Directors voted to carry out a stock split and adopt the trading lot system in order to clear up the situation of odd lot shares in conjunction with the transition to the stock transfer system (the electronic share certificate system) that is scheduled to take place in January 2009. Notice is given accordingly, as specified in the following.
The stock split and adoption of the trading lot system are contingent upon the proposed amendment to the Articles of Incorporation being approved by the 21st Regular General Meeting of Shareholders, which is scheduled to be held on June 24, 2008.
I. Purpose
With enactment of the Law Amending the Partial Revision of the Commercial Code Concerning Transfer of Bonds for Rationalization of Settlements Related to Trade such as Shares (Law No. 88 of 2004, hereafter referred to as the Settlement Rationalization Law), which is scheduled to take effect in January 2009, a transition will be made to the stock transfer system (the electronic share certificate system). In order to clear up the situation of odd lot shares, which are not handled by this system, a stock split will be carried out and the trading lot system will be adopted.
No substantive change in investment units will take place in conjunction with this stock split and adoption of the trading lot system.
II. Stock Split
1. Overview of the Stock Split
(1) |
Method of Split The date two days before the Settlement Rationalization Law goes into effect will be taken as the reference date. The shares belonging to shareholders who are recorded or registered in the final register of shareholders and in the substantial shareholders list as of that date (including the holders of odd lot shares recorded or registered in the final register of odd lot shares on that date) will be split at a ratio of 100 shares for each share. |
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(2) |
Increase in the Number of Shares Due to the Split
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2. Schedule for Stock Split
| • | Reference date | : | Two days before the Settlement Rationalization Law goes into effect | ||
| • | Effective date | : | One day before the Settlement Rationalization Law goes into effect |
| Note | : | If the date the Settlement Rationalization Law goes into effect is Monday, January 5, 2009, which is the target date for implementation in business, then the reference date will be Saturday, January 3, 2009, and the effective date will be Sunday, January 4, 2009. In this case, trading in JR East shares on the Tokyo Stock Exchange, the Osaka Stock Exchange, and the Nagoya Stock Exchange will be suspended from Thursday, December 25, 2008, to Tuesday, December 30, 2008. |
III. Adoption of the Trading Lot System
1. Newly Established Number of Shares Per Trading Lot
Given that section II (Stock Split) takes effect, the trading lot system will be adopted the day before the date on which the Settlement Rationalization Law takes effect. The trading lot will be 100 shares.
2. Schedule
| • | Effective date | : | One day before the Settlement Rationalization Law goes into effect |
| Note | : | If the date the Settlement Rationalization Law goes into effect is Monday, January 5, 2009, which is the target date for implementation in business, then the effective date will be Sunday, January 4, 2009. |
IV. Amendment of the Articles of Incorporation
The specific content of the proposed amendment to the Articles of Incorporation concerning the stock split and the adoption of the trading lot system that will be presented to the 21st Regular General Meeting of Shareholders, which is scheduled to be held on June 24, 2008, is slated to be decided together with the content of other resolutions for the shareholders at the Board of Directors meeting scheduled to take place in mid-May 2008.
