Air New Zealand 2015 Annual Report Download - page 26

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AIR NEW ZEALAND GROUP
Notes to the Financial Statements (continued)
As at 30 June 2015
24
18. Share Capital (continued)
Kiwi Share
One fully paid special rights convertible share (the Kiwi Share) is held by the Crown. While the Kiwi Share does not carry any general Voting Rights,
the consent of the Crown as holder is required for certain prescribed actions of the Company as specified in the Constitution.
Non New Zealand nationals are restricted from holding or having an interest in 10 percent or more of voting shares unless the prior written consent
of the Kiwi Shareholder is obtained. In addition, any person that owns or operates an airline business is restricted from holding any shares in the
Company without the Kiwi Shareholder’s prior written consent.
Voting rights
On a show of hands or by a vote of voices, each holder of Ordinary Shares has one vote. On a poll, each holder of Ordinary Shares has one vote for
each fully paid share.
All Ordinary Shares carry equal rights to dividends and equal distribution rights on wind up.
Application of treasury stock method
Share repurchase
On 30 September 2014, the Group announced that it was renewing the on-market share buyback facility established on 28 September 2012.
Under the facility Air New Zealand may purchase up to 3% or up to $66 million of its shares (whichever is lower) over the 12 month period to 29
September 2015. No shares were acquired during the 2015 financial year (30 June 2014: Nil).
During the year ended 30 June 2015 the Group utilised treasury stock of 2,481,280 Ordinary Shares to fulfil obligations under employee share-
based compensation plans (30 June 2014: 6,252,332 shares). Total treasury stock held as at 30 June 2015 is 34,090 shares (30 June 2014:
2,515,370 shares).
Staff Share Scheme
Unallocated shares of the Air New Zealand Staff Share Schemes are accounted for under the Treasury Stock method, and deducted from Ordinary
Share capital on consolidation. The number of unallocated shares as at 30 June 2015 was 93 (30 June 2014: 93).
Equity-Settled Share-Based Payments
The fair value (at grant date) of performance share rights and options granted to employees is recognised as an expense, within the
Statement of Financial Performance, over the vesting period of the rights and options, with a corresponding entry to “Share Capital”.
The amount recognised as an expense is adjusted at each reporting date to reflect the extent to which the vesting period has expired
and management’s best estimate of the number of rights and share options that will ultimately vest.
Performance rights and options over ordinary shares
Performance share rights were offered for the first time in the year ended 30 June 2015 to a number of senior executives on attainment of
predetermined performance objectives.
In prior years, share options were granted to a number of senior executives on attainment of predetermined performance objectives. The Group
undertakes a stock settled share appreciation rights scheme whereby shares are issued equating to the delta between the market price and the
exercise price.
The total expense recognised in the year ended 30 June 2015 in respect of equity-settled share-based payment transactions was $4 million
(30 June 2014: $4 million).