Daiwa Securities Group Annual Report 2012 17. Owners’ equity Additional paid-in capital and earned surplus are included in “Capital  surplus” and “Retained earnings” in the accompanying consolidated  balance sheets. In principle, the Companies Act of Japan (“the Act”) requires a com- pany to credit the entire amount of issued shares to common stock  (and preferred stock, if any); however, a company may classify an  amount not exceeding one-half of the entire issued amount of shares  as additional paid-in capital, which is included in “Capital surplus” in  the accompanying consolidated balance sheets, with a resolution of  the Board of Directors. The maximum amount that the Company can distribute as divi- dends is calculated based on the non-consolidated financial state- ments of the Company in accordance with the Act. The total amount  of retained earnings available for dividends in the Company’s statutory  book of accounts as of March 31, 2012 amounted to ¥343,740 mil- lion ($4,191,951 thousand). According to the Act, a company should set aside 10% of cash  dividends and other cash appropriations as additional paid-in capital  or earned surplus until the total becomes one quarter of the common  stock (and preferred stock, if any). Additional paid-in capital and  earned surplus are allowed to be utilized to eliminate or reduce a  deficit with a resolution of the shareholders’ meeting or may be trans- ferred to common stock with a resolution of the Board of Directors,  and also may be transferred to other capital surplus and retained  earnings, respectively, which are potentially available for dividends.  Under Article 459-1 of the Act, the articles of incorporation of the  Company stipulate that the Board of Directors is to determine divi- dends. Cash dividends of ¥3 ($0.04) per share amounting to ¥5,141  million ($62,695 thousand) and ¥3 ($0.04) per share amounting to ¥5,  141 million ($62,695 thousand) were approved by the Board of  Directors on May 15, 2012 and October 28, 2011, respectively. Daiwa has various stock option plans. and June 25, 2011, approved granting stock options. These options  are categorized into two types depending on the scope of the indi- vidual persons covered by the plans and exercise conditions. The first  is the stock subscription rights that were issued free to directors and  executive officers of the Company, its subsidiaries and its affiliated  companies, and the amount paid in upon exercise of such subscrip- tion rights is ¥1 ($0.01) per share. The second is the stock subscrip- tion rights that shall be issued to directors, executive officers and  certain employees of the Company, its subsidiaries and its affiliated  companies, excluding the persons to whom the first stock subscrip- tion rights were issued. The amount paid in upon exercise of such  subscription rights shall be determined based on the market price of  the Company’s common stock at the time of the issuance of such  subscription rights. The shareholders of the Company approved granting stock options to  directors and certain key employees on June 23, 2004. The plan  provides for the issuance of up to 4,500 thousand shares in the form  of options to directors and executive officers, and the amount paid in  upon exercise of such subscription rights is ¥756 ($9.22) per share.  The options may be exercised during the period from July 1, 2006  until August 31, 2011. On the same day, the shareholders’ meeting of  the Company approved a change in the articles of incorporation so  that the Company may be entitled to repurchase its shares by the  resolution of its Board of Directors. The shareholders of the Company on June 24, 2005, June 24,  2006, June 23, 2007, June 21, 2008, June 20, 2009, June 26, 2010,  18. Share-based payment The date of approval at the shareholders’ meeting, the balance of the exercisable options, exercise price and exercise period for the stock  options of the Company at March 31, 2012 are as follows: Date of approval at the  shareholders’ meeting Balance of the exercisable options  (The number of shares) Exercise price Exercise period (Yen/share) (U.S. dollars/share) June 24, 2005 431,000 ¥ 1 ($ 0.01) from July 1, 2005 to June 30, 2025 1,816,000 ¥ 750 ($ 9.15) from July 1, 2007 to August 31, 2012 June 24, 2006 248,000 ¥ 1 ($ 0.01) from July 1, 2006 to June 30, 2026 2,423,000 ¥1,455 ($17.74) from July 1, 2011 to June 23, 2016 June 23, 2007 266,000 ¥ 1 ($ 0.01) from July 1, 2007 to June 30, 2027 – ¥1,176 ($14.34) from July 1, 2012 to June 22, 2017 June 21, 2008 316,000 ¥ 1 ($ 0.01) from July 1, 2008 to June 30, 2028 – ¥ 881 ($10.74) from July 1, 2013 to June 20, 2018 June 20, 2009 627,000 ¥ 1 ($ 0.01) from July 1, 2009 to June 30, 2029 – ¥ 496 ($ 6.05) from July 1, 2014 to June 19, 2019 June 26, 2010 1,043,000 ¥ 1 ($ 0.01) from July 1, 2010 to June 30, 2030 – ¥ 380 ($ 4.63) from July 1, 2015 to June 25, 2020 June 25, 2011 1,211,000 ¥ 1 ($ 0.01) from July 1, 2011 to June 30, 2031 – ¥ 326 ($ 3.98) from July 1, 2016 to June 24, 2021 85