5.Financing

|Q5 (Procedure for Foreign Investors - Investor)

What kind of special procedures are necessary by the foreign investor in the issuance of new shares if a foreigner invests in our company?

If the foreign investor is not resident in Japan, the investment is a “inward direct investment” under the Foreign Exchange Law. In the case of a “inward direct investment”, the investor must submit a post-transaction report to the Bank of Japan (unless the investor is a citizen of certain specified countries, in which case a pre-transaction report is required). However, if the ownership percentage of the foreign investor (together with any spouse, affiliate and other parties with a special relationship to the investor) is less than 10%, then no report is required.

(Posted: January 27, 2012)