Asus 2008 Annual Report Download - page 187

183
ASUSTEK COMPUTER INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(In thousands of New Taiwan dollars unless otherwise stated)
(8) As of December 31, 2008, the authorized capital of the Company was $47,500,000
thousand ($500,000 thousand were reserved for employee stock options) of which
$42,460,513 thousand were issued and outstanding, divided into 4,246,051,269 shares
at $10 par value.
24. ADDITIONAL PAID-IN CAPITAL
(1) Additional paid-in capital consists of the following:
2008/12/31
2007/12/31
(Adjusted)
Premium on capital stock
$20,500,035
$20,213,812
Premium on conversion of bonds
7,360,596
6,112,719
Treasury stock transactions
617 617
Effect of changes of the investee companies’ equity
1,835,145
2,053,583
Total
$29,696,393
$28,380,731
(2) The R.O.C. Company Law stipulates that additional paid-in capital, other than premium
on capital stock and donated capital, shall not be used to increase capital, nor shall cash
dividends be declared from such additional paid-in capital.
25. LEGAL RESERVE
The R.O.C. Company Law stipulates that, after paying all taxes, companies must retain at
least 10% of their annual earnings, as defined in the Law, until such retention equals the
amount of capital stock. This retention can be used to make up prior years’ losses. Once
the legal reserve equals one-half of capital stock, 50% of the reserve may be transferred to
common stock.
26. DISTRIBUTION OF EARNINGS
(1) As provided by the Company’s Articles of Incorporation resolved by the stockholders’
meeting on June 11, 2008, annual net income after making up prior years' losses, if any,
should be distributed as follows: (1) To appropriate 10% as legal reserve, with its
remainder, (2) To appropriate the proper amount as special reserve according to relevant
regulation or as required by the government, with its remainder, (3) To appropriate 10%
of capital stock as capital interest, with its remainder, (4) To appropriate no less than 1%