Acer 2005 Annual Report Download - page 69

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- 64 -
as they are deemed unissued shares. In August 2004, the Company retired 41,179,000
shares of treasury stock not transferred with in the regulated period, amounting to
NT$2,028,966. The related legal registration process has been completed.
In 2004, in order to protect the shareholders’ interest, the Company purchased and retired
treasury stock in accordance with the Securities Exchange Law, Article 28-2, as follows
(expressed in thousands of shares and New Taiwan dollars):
2004
Number of Amounts
shares NT$
Beginning balance 19,373 951,886
Addition 80,000 3,849,015
Retired (99,373) (4,800,901)
Ending balance - -
According to the Securities Exchange Law, treasury stock shall not be pledged for debts.
Until the treasury stock is reissued, it does not possess any shareholder rights.
Furthermore, total shares of treasury stock shall not exceed 10% of the Company’ s common
shares issued. Moreover, the total amount of treasury stock cannot exceed the sum of
retained earnings, capital surplus derived from paid-in capital in excess of par value, and
any other realized capital surplus. As of December 31, 2004 and 2005, the Company did
not hold any treasury stock.
In 1997, AWI purchased GDRs issued by AI for the implementation of its overseas
employee stock option plan. Further, AWI and CCI also purchased common stock of AI.
This stock was converted into the Company’ s common shares in a ratio of 2.5 shares of AI’ s
common stock to l share of the Company’ s common stock on March 27, 2002.
Additionally, TWP’ s treasury shares and CCI’ s investments in TWP were converted into the
Company’ s shares after the acquisition of TWP’ s minority shares through share swap. The
subsidiary-owned common stock and GDRs of the Company as of December 31, 2004 and
2005, are summarized below (expressed in thousands of shares and New Taiwan dollars):
December 31, 2004 December 31, 2005
Number of
Shares
Book
Value
Market
Price
Number of
Shares
Book
Value
Market
Price
NT$ NT$ NT$ NT$
Common stock 15,543 798,662 804,815 16,476 798,663 1,315,408
GDR 4,680 2,612,618 1,187,556 4,695 2,472,257 1,832,790
3,411,280 1,992,371 3,270,920 3,148,198
(c) Capital surplus
December 31, 2004 December 31, 2005
NT$ NT$ US$
Share premium:
Paid-in capital in excess of par value 1,359,310 856,901 26,097
Surplus from merger 22,781,719 22,781,719 693,824
Premium on capital stock resulting from
conversion of convertible bonds
5,054,994
4,552,585 138,650
Forfeited interest resulting from
conversion of convertible bonds
1,006,210
1,006,210 30,645
Surplus related to the transaction of
treasury stock by subsidiary
companies
71,781
101,316 3,086