A stock company may reduce the amount of its reserves. In these cases, the following matters must be decided by a resolution at a shareholders meeting:
株式会社は、準備金の額を減少することができる。この場合においては、株主総会の決議によって、次に掲げる事項を定めなければならない。
if all or part of the amount by which the reserves are reduced is to be appropriated to the stated capital, a statement to that effect and the amount to be appropriated to the stated capital;
減少する準備金の額の全部又は一部を資本金とするときは、その旨及び資本金とする額
The amount under item (i) of the preceding paragraph may not exceed the amount of the reserves as at the day under item (iii) of that paragraph.
If a stock company reduces the amount of the reserves concurrently with a share issue, and the amount of the reserves after the day on which relevant reduction in the amount of the reserves takes effect is not less than the amount of the reserves before relevant day, for the purpose of the application of the provisions of paragraph (1), the phrase "resolution at a shareholders meeting" in that paragraph is deemed to be replaced with "decision of the directors (or, for a company with board of directors, a resolution of the board of directors meeting)".