Air New Zealand 2016 Annual Report Download - page 26

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Notes to the Financial Statements (continued)
As at 30 June 2016
24
AIR NEW ZEAL AND ANNUAL FINANCIAL RESULTS 2016
19. 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
During the year ended 30 June 2015, the Group utilised treasury stock of 2,481,280 Ordinary Shares acquired under a buy-back programme to
fulfil obligations under employee share-based compensation plans. No treasury stock was utilised in the 2016 financial year. Total treasury stock
held as at 30 June 2016 is 34,090 shares (30 June 2015: 34,090 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 2016 was 93 (30 June 2015: 93).
Equity-Settled Share-Based Payments
The fair value (at grant date) of 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.
Share rights and options over ordinary shares
Share rights have been offered to a number of senior executives on attainment of predetermined performance objectives. Prior to the 2015 financial
year, 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 2016 in respect of equity-settled share-based payment transactions was $5 million
(30 June 2015: $4 million).