Nomura Holdings Inc., the nation's largest brokerage, plans to revise its corporate bylaws to allow the issuance of preferred shares as it seeks to secure additional funds amid a further deterioration in market conditions, sources said Thursday.
The revision is expected to be endorsed at a general shareholders' meeting in June, the sources said. It will become the first case of a major Japanese securities house issuing preferred shares.
Preferred shares are attached with a fixed dividend that will take priority over common shares, but do not carry voting rights that can be exercised at general shareholders' meetings. Major Japanese banks and corporations have opted to issue preferred shares as a relatively quick solution to boost funds.