93
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
24.
Share capital and treasury shares
(continued)
(a)
Treasury shares
The Company acquired 299,000 (2013: 250,000) ordinary shares in the Company in the open
market during the financial year. The total amount paid to acquire the ordinary shares was
$136,000 (2013: $135,000) and this was presented as a component within share capital.
On 11 September 2014, the Company transferred and used 143,975 (2013: Nil) treasury
shares to eligible employees of the Company and its Subsidiaries pursuant to the Grant of
Share Awards under the Mencast Performance Share Award Scheme (Note 24 (c)).
(b)
Share options
The Company established the Mencast Employee Share Option Scheme (the “ESOS”) on 30
May 2008 for granting of options to full-time employees and directors of the Company and
its subsidiaries. The total number of ordinary shares over which the Company may grant
under the ESOS shall not exceed 15% of the issued share capital of the Company on the day
preceding the date of grant.
The Scheme is administered by the Remuneration Committee (“RC”) which consists of
directors (including directors or persons who may be participants of the ESOS). A member
of the RC who is also a participant of the ESOS must not be involved in its deliberation in
respect of options granted or to be granted to him.
The exercise price for each ordinary share in respect of which an option is exercisable shall
be determined by the Committee as follows:
(i)
at a price equal to the average of the last dealt prices for the five consecutive Market
Days immediately preceding the relevant date of grant of the relevant option; or
(ii)
at a price which is set at a discount to the Market Price provided that the maximum
discount shall not exceed 20% of the Market Price.
Options granted with the exercise price set at Market Price shall only be exercisable after 12
months of the date of grant of that option. Options granted with the exercise price set at a
discount to Market Price shall only be exercisable after 24 months from the date of grant of
that option. Options granted under the ESOS will have a life span of ten years.
Under the rules of the ESOS, there are no fixed periods for the grant of options. As such,
offers for the grant of options may be made at any time at the discretion of the RC. However,
no options shall be granted during the period of 30 days immediately preceding the date of
announcement of interim or final results (as the case may be).
In addition, in the event that an announcement on any matter of an exceptional nature
involving unpublished price sensitive information is imminent, offers may only be made after
the second Market Day from the date on which the aforesaid announcement is made.
The lapsing of option is provided for upon the occurrence of certain events, which include:
(a)
termination of the participant’s employment;
(b)
bankruptcy of the participant;
(c)
death of the participant;
(d)
take-over of the Company; and
(e)
the winding-up of the Company (voluntary or otherwise)
