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May 15, 2002
JSAT Corporation |
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| Notice Concerning Reduction
of Paid-in Capital and Legal Reserves |
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JSAT Corporation wishes to serve notice that at a meeting
today, the Board of Directors approved a resolution to reduce statutory
reserves, specifically additional paid-in capital and legal reserves,
in accordance with Article 289-2 of the Japanese Commercial Code.
The resolution is subject to approval at the 18th Ordinary General
Meeting of Shareholders scheduled for June 26, 2002.
1.Purpose for Reducing Statutory Reserves
The reduction of statutory reserves will enable JSAT to execute financial
strategies with greater flexibility, following the relaxation of restrictions
on the acquisition of treasury stock pursuant to amendments to the
Japanese Commercial Code. JSAT will be free to buy back treasury stock
and use other means in execution of its financial strategies.
2.Details of the Reduction of Statutory Reserves
| (1) Additional paid-in
capital |
| |
(¥ thousand) |
| |
| Additional
paid-in capital |
Decrease |
Residual
value |
| 31,770,352 |
18,000,000 |
13,770,352 |
|
| |
|
| (2) Legal reserve |
| |
(¥ thousand) |
| |
| Legal
reserve |
Decrease |
Residual
value |
| 236,892 |
236,892 |
0 |
|
3.Schedule for Reducing Statutory Reserves:
| 1) |
Board Resolution Date
May 15, 2002 |
| 2) |
Shareholder Meeting Resolution Date
June 26, 2002 |
| 3) |
Date of Effect
Scheduled for late July or early August, after creditors have
had a chance to file motions of opposition. |
Note:
The above is subject to approval of "Reduction of Statutory Reserves"
at the 18th Ordinary General Meeting of Shareholders scheduled for
June 26, 2002. |
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