94
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
24.
Share capital and treasury shares
(continued)
(b)
Share options
(continued)
Since the commencement of the ESOS till the end of the financial year, no option has been
granted under the ESOS.
No shares have been issued during the financial year by virtue of the exercise of options to
take up unissued shares of the Company and its subsidiaries.
There were no unissued shares of the Company and its subsidiaries under option at the end
of the financial year.
(c)
Performance shares
The Mencast Performance Share Award Scheme (the “Scheme”) was approved by members
of the Company at extraordinary general meeting (“EGM”) held on 10 November 2010 which
provides for the award of fully paid-up ordinary shares in the share capital of the Company,
free of charge to Group executive and non-executive Directors when and after pre-determined
performance target(s) are being achieved.
Controlling shareholders or associates of a controlling shareholder who meet the eligibility
criteria are also eligible to participate in the Scheme provided that the participation of and
the terms of each grant and the actual number of awards granted under the Scheme to a
participant who is a controlling shareholder or an associate of a controlling shareholder shall
be approved by the independent shareholders in separate resolutions for each such person.
The Scheme is a share incentive scheme which will allow the Company,
inter
alia, to target
specific performance objectives and to provide an incentive for Participants to achieve these
targets. The directors believe that the Scheme will help to achieve the following positive
objectives:
(a)
reward, retain and motivate employees to achieve increased performance;
(b)
provide Company with comprehensive set of remuneration tools and further strengthen
its competitiveness in attracting and retaining superior local and foreign talent; and
(c)
encourage greater dedication and loyalty by enabling the Company to give recognition
for past contributions and services as well as motivating Scheme Participants generally
to contribute towards the Group’s long-term prosperity.
The Scheme is administered by the directors which comprises one independent director at all
times.
The Scheme shall continue in force at the discretion of the Remuneration Committee, subject
to a maximum period of ten (10) years commencing on the date on which the Scheme is
adopted by the Company in general meeting, provided always that the Scheme may continue
beyond the above stipulated period with the approval of shareholders by ordinary resolution in
general meeting, and of any relevant authorities which may then be required.
The Company may deliver shares pursuant to awards granted under the Scheme by way of:
(i)
issuance of new shares; and/or
(ii)
delivery of existing shares purchased from the market or shares held in treasury
The total number of ordinary shares over which the Company may grant under the Scheme
shall not exceed 15% of the issued share capital of the Company on the day preceding the
date on which the award is granted.
The adoption of the Scheme is to complement the existing Mencast Employee Share Option
Scheme (the “ESOS”).
