(1) A company may issue bonds with warrants to subscribe to new shares.
(2) In cases falling under paragraph (1), any of the following matters that are not provided for in the articles of incorporation shall be determined by the board of directors, unless the articles of incorporation provide that it be determined by a general meeting of shareholders: <Amended by Act No. 10600, Apr. 14, 2011>
1. The total amount of bonds with warrants;
2. Details of warrants vested to such bonds;
3. The period during which the warrants can be exercised;
4. A statement on the transferability of the warrants only;
5. A statement to the effect that, upon request of a person who intends to exercise his/her preemptive right to new stocks, payment of the issuance price of bonds with warrants shall be deemed made under Article 516-9 (1), instead of the redemption of such bonds;
6. Deleted; <by Act No. 5053, Dec. 29, 1995>
7. Details on the preemptive rights to subscribe to bonds with warrants and the amount of bonds subject to such rights;
8. Details on issuance of bonds with warrants to persons other than shareholders and the amount of such bonds with warrants to be issued.
(3) The total issuance price of shares to be issued upon exercise of preemptive right to new stocks vested to each bonds shall not exceed the total amount of such bonds with warrant.
(4) If, in cases where bonds with warrants are issued to those who are not shareholders, the articles of incorporation do not specify the amount of such bonds, the particulars of the preemptive rights to new stocks, and the period during which the preemptive rights to new stocks are to be exercised, these matters shall be determined by a resolution under Article 434. In such cases, the proviso to Article 418 (3) shall apply mutatis mutandis. <Amended by Act No. 6488, Jul. 24, 2001>
(5) The provisions of Article 513 (4) shall apply mutatis mutandis in cases falling under paragraph (4).[This Article Newly Inserted by Act No. 3724, Apr. 10, 1984]