With the Wednesday arrest of Livedoor Representative Director Fumito Kumagai and fresh warrants served on founder Takafumi Horie and three former executives for alleged accounting fraud, Livedoor's delisting from the Tokyo Stock Exchange may be inevitable. Below are answers to some questions about what might happen to Livedoor and the consequences for its shareholders.
When might the Tokyo Stock Exchange make a decision about whether Livedoor will be delisted?
The TSE probably will decide by mid-March. After the 20-day detention of the former Livedoor executives -- the second one for four of them -- ends in mid-March, prosecutors are expected to charge the five with accounting fraud or the Securities or Exchange Surveillance Commission might file a criminal complaint against them on the same charges.