Cathay Pacific 2009 Annual Report Download - page 80

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22. Share capital
2009 2008
Number of shares HK$M Number of shares HK$M
Authorised (HK$0.20 each) 5,000,000,000 1,000 5,000,000,000 1,000
Issued and fully paid (HK$0.20 each)
At 1st January 3,932,746,072 787 3,940,025,072 788
Shares repurchased during the year – – (9,390,000) (2)
Share options exercised 1,098,500 – 2,111,000 1
At 31st December 3,933,844,572 787 3,932,746,072 787
The Company adopted a share option scheme (the “Scheme”) on 10th March 1999 for the purpose of providing
flight deck crew with an incentive to contribute towards the Company’s results. All participants of the Scheme were
flight deck crew who paid HK$1 each on acceptance of their share options and were granted options to subscribe
for shares of the Company at a price not less than the higher of 80% of the average of the closing prices of the
Company’s shares on the Stock Exchange on the five trading days immediately preceding the date of grant, and the
nominal value of the shares. The Scheme had been closed and no share options were available for issue under the
Scheme during the year. The entitlement of each participant has not exceeded 0.32% of the maximum aggregate
number of shares in respect of which options have been granted under the Scheme.
Options to subscribe for a total of 68,327,000 shares at the exercise price of HK$7.47 per share were granted
under the Scheme on the date of grant 15th March 1999. Other than in limited circumstances, the options in
relation to 50% of the shares became exercisable on 15th March 2002, and the balance on 15th March 2004.
The options were, except in limited circumstances, exercisable until 14th March 2009. All unexercised options
lapsed in accordance with the terms of the Scheme on 15th March 2009, being 10 years after the date of grant
15th March 1999.
HKFRS 2 “Share-based Payment” does not apply to this Scheme as share options were granted before 7th
November 2002.
Upon exercise of share options, equity was increased by the number of options exercised at the exercise price.
2009
Number of shares
2008
Number of shares
Movements in options outstanding comprise:
At 1st January 2,619,500 4,730,500
Options exercised (1,098,500) (2,111,000)
Options lapsed (1,521,000) –
At 31st December –2,619,500
Options vested at 31st December –2,619,500
No options were granted under the Scheme during the year.
2009 2008
Details of share options exercised during the year:
Exercise date 3/2/09 – 14/3/09 8/1/08 – 30/12/08
Proceeds received (HK$) 8,205,795 15,769,170
Weighted average closing share price immediately before
the exercise date (HK$) 8.13 14.87
Notes to the Accounts STATEMENT OF FINANCIAL POSITION
78