This paper aims to describe a corporate system in the coal mining industry called Ube-style anonymous association. This trust system has been supported by and developed in accordance with the customs in Ube areas from Meiji to Showa period.
Coal mine companies used to have equal equity structure accruing equivalent right to each equity owner. However, since the shift from short-term to long-term management, equity structure had evolved to allow absorption of small capital with equity holdings. This relatively increased the equity holdings of functional capitalists resulted in larger share of profits and greater executive power.
Resolutions in the general meeting of stakeholders previously done on human rule, a quorum defined by voting rights, was changed to a material rule which does not require an existence of a quorum.
Despite the shift to long-term management, some companies still provide 400% dividend to its stakeholders and do not account for retained earnings. But, with the expansion of and constraints of partnership structure, the ratio of dividend payout decreased. Companies then recognized the importance of complementing financial policies with corporate management.
This paper concludes that although Ube-style anonymous association retains its peculiar corporate system, it advances to establish itself as a corporate system with differentiating equity structure and is responsive to organizational and management constraints.
