TSE Decides On Delisting And Designation As Securities To Be Delisted Of LCA Holdings Corporation
Oct 30 15
TSE has decided on delisting and designation as securities to be delisted of LCA Holdings Corporation. Period of designation as securities to be delisted is from October 30, 2015 to November 30, 2015. Delisting date is December 1, 2015. In cases where circumstances in which the company should be promptly delisted occur, TSE may change the period of designation as securities to be delisting and the delisting date. Provision: Securities Listing Regulations, Rule 601, Paragraph 1, Item 11-2 e - due to falling under the case where the exchange deems that the internal management system, etc. of a listed company has not improved on the basis of the written confirmation of the internal management system resubmitted by the listed company. Reason: LCA Holdings Corporation had received an order from the Director General of the Kanto Local Finance Bureau on December 19, 2013 to submit amendment reports, etc. to correct false statements made in its securities reports, etc. of past fiscal years, and had submitted the amendment reports, etc. TSE's investigation and inquiries revealed that such improper statements were due mainly to the severe lack of awareness toward compliance of the individuals involved in such acts and the inadequacies of board members and the statutory auditors in supervising and checking such individuals. Therefore, TSE deemed the improvement of the internal management system, etc. of the company to be highly necessary and designated its stock as a security on alert on February 8, 2014. In the examination after one (1) year elapsed from the designation, TSE found many cases of matters requiring board resolution were not subject to the necessary discussion and the internal auditors and statutory auditor did not highlight these cases. Checks on decision-making by the board of directors, etc. and business execution were in sufficient, there was no framework at the company for verifying the necessity for contracts or the appropriateness of the monetary amounts involved, and the company failed to appropriately develop or sufficiently apply internal rules. As such, TSE extended the stock's designation as a security on alert. TSE checked the contents of the written confirmation of the internal management system submitted by the company in the second examination, 18 months after the designation. TSE found that contracts with several third parties that provided financial support to the company in the past were left unconcluded. As such, the company was deemed to have continued to fail to establish an adequate framework for managing and verifying contracts. In addition, TSE found that the company did not conduct appropriate investigation into the numerous cases of unknown fund inflows, including such transactions, and that they had been left unverified for a long period of time. Additionally, TSE found that, although the company had a large amount of delinquent debt, it had not started to discuss repayment with many creditors, and remained in breach of contract. Furthermore, TSE found that the company had not made efforts, such as debtor surveys, to collect large amounts in long-term accounts receivable and long-term loans receivable, which were recorded under allowance for doubtful accounts. As such, TSE deemed that there were in inadequacies in credit management at the company. In addition, TSE deemed that the audits by the internal auditors and statutory auditors at the company continued to lack effectiveness because the internal auditors and statutory auditors failed to highlight these inadequacies to facilitate prompt resolution. In overall consideration of the above situation, TSE deems that problems continue to remain in the internal management system, etc. of the company and they have not improved.
LCA Holdings Corporation to Report Q1, 2016 Results on Oct 02, 2015
Sep 24 15
LCA Holdings Corporation announced that they will report Q1, 2016 results on Oct 02, 2015
LCA Holdings Corporation, Annual General Meeting, Aug 19, 2015
Jul 21 15
LCA Holdings Corporation, Annual General Meeting, Aug 19, 2015.