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Q：
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May a shareholders meeting resolution on profit distribution be amended?
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A：
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If the distribution has not yet been executed, an extraordinary shareholders’ meeting may be convened before the end of the fiscal year in which the annual general meeting was held, in order to amend the profit distribution resolution adopted at that annual general meeting.
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Q：
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May a company distribute profits only once per fiscal year?
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A：
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A company may provide in its articles of incorporation that profit distribution may be made at the end of each quarter or each half-year of the fiscal year.
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Q：
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May reserves be used?
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A：
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Statutory surplus reserves and capital reserves may be used to offset the company’s losses.
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Q：
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May reserves be used to offset losses?
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A：
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Statutory surplus reserves and capital reserves may be applied to offset the company’s losses.
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Q：
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May profits and reserves be distributed to persons other than shareholders?
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A：
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Profits, statutory surplus reserves, and capital reserves may only be distributed to shareholders; employees and directors or supervisors may not be recipients.
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FAQ
