2003 JAPAN LAW: STOCK EXCHANGES-TOKYO STOCK
EXCHANGE
Keywords: Stock Exchange, Bankruptcy, Rehabilitate, FTC, Fair Trade Commission,
Antimonopoly Law
Copyright 2004. All rights reserved Attorney Roderick H. Seeman
===============================================================
The Tokyo Stock Exchange will be permitting companies that have filed for
bankruptcy to remain listed so long as they meet certain conditions making
it likely that they will recover health. While seeking legal rehabilitation
their creditors will have to agree to business plans including debt forgiveness,
and the firm will have to look likely to be able to retain shareholders equity
of 1 billion yen keep a market capitalization of 1 billion yen.
Previously the market immediately delisted any firm filing for bankruptcy.
In May 2003 the Fair Trade Commission issued a warning to the Tokyo Stock
Exchange that its regulations to stock brokerage firms about short selling
financing fees could violate the Antimonopoly Law. The commission is concerned
that the exchange’s regulations are trying to force the brokerages to all
charge uniform rates.