Asus 2009 Annual Report Download - page 180

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176
ASUSTeK COMPUTER INC. AND SUBSIDIARIES
Notes to Financial Statements
(Continued)
(16) Stockholders’ equity
A. Capital stock
On June 11, 2008, the stockholders resolved to increase capital by 494,065,000 shares by
capitalizing the retained earnings and employees’ bonuses of $4,940,652. The holders of ECB
1 had converted the bonds into 23,627,000 shares of common stock in 2008.
On June 16, 2009, the stockholders resolved to increase capital by 26,851,000 shares by
capitalizing the retained earnings and employees’ bonuses of $268,512. The record date of
this capital increase was set as August 24, 2009. The registration procedures related to the
issuance of shares were completed.
As of December 31, 2009 and 2008, the authorized capital of the Company was $47,500,000
($500,000 was reserved for employee stock options). Each share of this authorized capital has a
par value of $10 per share.
The Company issued Global Depositary Receipts (GDRs), and the GDRs are now listed on the
London Stock Exchange. The GDRs (originally 21,000,000 units issued and changed to
4,200,000 units from January 2, 2008) represent 21,000,000 shares of the Company’ s common
stock.
B. Treasury stock
Movements of treasury stock were as follows:
2009/1/1~2009/12/31
Shares (in thousands) Amount
Beginning of the year - $ -
Addition 26,125 873,459
Retirement (26,125) (873,459)
Ending of the year - $ -
Pursuant to the Securities and Exchange Act, the total shares of treasury stock shall not
exceed 10% of the number of shares issued, and the total purchase cost shall not exceed the
sum of the retained earnings, additional paid-in capital-premiums, and realized additional paid-
in capital. For shares bought back with the intent of maintaining the Company’ s credibility
and stockholders’ rights, the registration procedure must be completed within six months from
the date of buyback. Treasury stock held by the Company cannot be pledged and does not
have the right to receive dividends or vote until it is disposed of.