Update : Jun. 12, 2013
[Tokyo Stock Exchange, Inc.]
Designation as a Securities on Alert has been cancelled as below.
|1. Issue Name||
OLYMPUS CORPORATION stock
(Code: 7733, Market Division: 1st Section)
|2.Date of Cancellation of Designation as Securities on Alert||Jun. 11, 2013 (Tue.)|
Securities Listing Regulations, Rule 501, Paragraph 3
(Due to falling under cases where the Exchange deems that there is no problem in the internal management system, etc. on the basis of the substance, etc. of the Written Confirmation of Internal Management System)
OLYMPUS CORPORATION (hereafter "the Company") had submitted amendment reports for Securities Reports, etc. for the periods from the fiscal year ended March 2007 to the first quarter of the fiscal year ended March 2012. In relation to the submission, TSE deemed that the Company concealed large unrealized losses caused by the management of financial assets using methods including the use of multiple funds outside the scope of consolidated accounts, regardless of the fact that they should have been included in financial statements, and overstated net assets over a long period of time. The Company was also found to have later used the opportunity of corporation acquisition to make excessive payments for the acquisition value of stocks and fees to intermediaries, sent such payments to funds to cover up losses, and cancelled unrealized losses on financial statements through the writing off of "goodwill (noren)." These actions were conducted under the knowledge of past representative directors, with the participation of directors, etc. responsible for accounting/financial affairs and/or corporate strategy, and using devious methods with the cooperation of multiple outside parties under the direction of certain members in supervisory positions.
TSE deemed that those actions were caused by insufficiencies in corporate governance due to malfunction of the board of directors and the board of auditors, in their roles of supervising and monitoring business execution by managers, as they did not conduct adequate examination regarding the necessity and propriety of transactions, etc. pertaining to corporate acquisition. Furthermore, a considerable deficiency in awareness of compliance in a portion of those in supervisory positions and insufficiencies in the structure and operation of supervision on important assets were found as the causes.
As such, TSE had designated the stock of the Company as Securities on Alert on January 21, 2012 due to deeming that there was a high necessity for improvement of the Company's internal management systems and other structures.
However, after re-examination based on the contents of the written confirmation on internal management systems and other structures, which the Company resubmitted after 1 year elapsed following such designation, regarding the condition of said systems and structures, TSE did not deem there to be a problem with such systems and structures, including improvements to the situation regarding the factors leading to the designation as Securities on Alert. As such, TSE has decided to cancel the designation of the Company's stock as Securities on Alert.
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