Guarantee obligation risk associated with a decline in the share price of shares held by the E-Ship Trust
First written in FY2021. 1 of 2 entries say "Mitigated", first in FY2023. Latest entry: FY2023.
33 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「The Trust-Type Employee Shareholding Incentive Plan (E-Ship®) ended in March 2022, and there are no applicable matters because the outstanding borrowings were repaid in a lump sum when the trust was terminated.」
The company stated that the guarantee obligation risk associated with a decline in the share price under the scheme had been eliminated as of the current period following the termination of E-Ship and the lump-sum repayment of the outstanding borrowings. - FY2021First statedAnnual report
「Because the company guarantees borrowings incurred by the employee shareholding trust to acquire company shares, a decline in the company's share price may result in accumulated losses on share sales equivalent to the amount within the trust. If borrowings remain outstanding in an amount equivalent to those losses when the trust terminates, the company will repay the outstanding borrowings.」
The company disclosed as a new risk that it may be required to repay borrowings related to the E-Ship trust if a decline in the share price leaves an outstanding balance when the trust terminates.