Air Canada 2006 Annual Report Download - page 107

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Special Common Shares
Each holder of special common shares was entitled to one vote per special common share held and each
special common share had liquidation rights in preference to other common shares of $0.01 per share.
Special Preferred Shares
Each holder of special preferred shares was not entitled to voting rights in respect to the special preferred
shares held. The holder of the special preferred shares was entitled to receive cumulative dividends at a
fixed rate of 8% per annum payable in money, property or by the issue of fully paid shares of any class of
the share capital of Air Canada. A holder of special preferred shares shall be entitled to require the
Corporation to redeem at any time all, or from time to time part, of the special preferred shares at $1 per
share.
Exchangeable Distressed Preferred Shares
Each holder of exchangeable distressed preferred (“EDP”) shares was not entitled to voting rights in
respect to the EDP shares held. The holders of EDP shares were entitled to receive an aggregate amount
of $5 by way of reduction of the stated capital of the EDP shares over a period of 5 years. Each EDP share
was convertible at any time at the option of the holder into one fully paid and non-assessable common
share. During 2005, 23,646,547 EDP shares with a nil carrying value were exchanged into common shares.
Class A Non-voting and Non-voting Shares
Each holder of class A non-voting and non-voting shares was not entitled to voting rights in respect to the
class A non-voting or non-voting shares held. During 2005 these shares were converted into common
shares.
Contributed Surplus
The changes during the years presented to Contributed surplus are as follows:
2006
2005
Contributed surplus, beginning of year $ 1,037 $ -
Allocation of corporate expenses (Note 1) 11 21
Fair value of stock options issued to Corporation employees
recognized as compensation expense (Note 11)
ACE plan 3 2
Air Canada plan 3 -
Allocation of reduction to intangible assets (Note 8) (340) 49
Utilization of future income tax assets (Note 8) (177) (105)
Contribution from ACE on transfer of investments (Note 1) 1,156 1,070
Contributed surplus, end of year $ 1,693 $ 1,037
107
Combined Consolidated Financial Statements 2006