Market News
May 15, 2015 TSE Continued Designation as Securities on Alert -MATSUYA CO.,LTD.-
The following issue will continue to be designated as Securities on Alert.
| １．Issue Name | MATSUYA CO.,LTD. stock (Code: 7452, Market Division: JASDAQ Standard) |
| ２．Date of Decision | May 13, 2015 (Wed.) |
| Provision | Securities Listing Regulations, Rule 501, Paragraph 3 before amendment on Aug. 9, 2013 as applied in accordance to the provisions of Paragraph 2 of the supplementary provisions of the amended regulations. (Due to not falling under cases where the Exchange deems that there is no problem in the internal management system, etc. on the basis of the Written Confirmation of Internal Management System submitted by the listed company) |
| ３．Reason | On Feb. 13, 2013, MATSUYA CO., LTD. (hereinafter referred to as "the Company") corrected its earnings reports, etc. of past fiscal years and submitted amendment reports pertaining to its securities reports, etc. Investigation and inquiries revealed that the issue had arisen due to a director instructing subordinates to attain unreasonably high targets, which led to employees recording fictitious transactions and rebates, etc. It was also found that certain members of the management, including the then representative director, concealed these improprieties in the fear that they would be discovered. The issue was caused mainly by a corporate culture that placed excessive emphasis on attaining performance targets, the board of directors and its members not functioning properly, the lack of awareness of compliance among management personnel and employees, and superficial compliance with internal rules regarding purchase rebates, etc., some of which were inadequate. As such, it was deemed that there were inadequacies in the internal management systems and frameworks of the Company. In overall consideration of the above situation, Osaka Securities Exchange Co., Ltd. deemed that there were significant deficiencies in the Company's internal management systems, etc. and the need for improvements was extremely high. Thus, it designated the Company's stock as a security on alert on May 15, 2013. TSE checked the written confirmation of internal management system submitted by the Company after one (1) year elapsed since the designation. Although improvement efforts were to address the issues at the time of designation, it was newly revealed that the former board member involved in the concealment made unauthorized monetary loans to a client through the accounts of the Company and its subsidiary, and the board of directors was found to have conducted almost no discussion on subsequent response to such loans. In addition, with respect to the monetary loan to the asset management company of the former representative director and president involved in the concealment, TSE found that there was no appropriate response toward early collection, among other problems that were recognized with regard to response toward the former board members involved in the concealment. Furthermore, these acts were conducted while inappropriate management of the subsidiary continued, and were found to have not improved at present. Based on this, because it cannot be confirmed that the internal management system, etc. of the Company has sufficiently improved, TSE has decided to continue the stock's designation as Securities on Alert. In the case where three (3) years elapse from the date of designation as Securities on Alert (May 15, 2013) and TSE deems that problems continue to exist in its internal management system, etc., the stock of the Company shall be delisted. |
Current Designations of Securities on Alert
Designation History of Designation of Securities on Alert
Designation History of Designation of Securities on Alert
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