Allotment of Shares for Subscription Article 204 A Stock Company must specify the persons to whom Shares for Subscription will be allotted from among the Applicants and the number of Shares for Subscription to be allotted to those persons. In such cases, the Stock Company may reduce the number of Shares for Subscription the Stock Company allots to such Applicants below the number under paragraph (2), item (ii) of the preceding Article.
In cases where Shares for Subscription are Shares with Restriction on Transfer, the determination under the provisions of the preceding paragraph must be made by a resolution at a shareholders meeting (or at a board of directors meeting for a Company with a Board of Directors);provided, however, that this does not apply in cases where it is otherwise prescribed in the articles of incorporation.
The Stock Company must notify the Applicants, no later than the day immediately preceding the date referred to in Article 199, paragraph (1), item (iv) (or, in cases where a period is prescribed under that item, no later than the day immediately preceding the first day of that period), of the number of Shares for Subscription that will be allotted to such Applicants.
In cases where the Stock Company has granted entitlement to the allotment of shares to its shareholders pursuant to the provisions of Article 202, if the shareholders do not submit, no later than the date under item (ii), paragraph (1) of that Article, applications under paragraph (2) of the preceding Article, such shareholders will lose the entitlement to the allotment of Shares for Subscription.
