Samsung 1999 Annual Report Download - page 48

December 31, 1999
1. The Company:
Samsung Electronics Co., Ltd. (the “Company”) is
incorporated under the laws of the Republic of Korea to
manufacture and sell electronic goods, communication
facilities, semiconductors, telecommunication products and
other similar products.
The Company’s stock is publicly traded and all issued and
outstanding shares are listed on the Korean Stock Exchange.
Under its Articles of Incorporation, the Company is
authorized to issue 500,000,000 shares of capital stock (par
value 5,000), of which 100,000,000 shares are cumulative,
participating preferred stock, which are non-voting and
entitled to a minimum cash dividend (9% of par value). The
non-cumulative, non-voting preferred stock issued on or
before February 28, 1997 is entitled to an additional cash
dividend (1% of par value) over common stock. At December
31, 1999, 151,214,992 shares of common stock and
23,893,427 shares of such preferred stock were issued and
outstanding.
As of December 31, 1999, major shareholders of the
Company’s stock, including preferred stock, consist of the
following:
Name of Number of Percentage of
Shareholder Shares Ownership (%)
Citibank, N.A. 16,800,865 9.59
Samsung Life
Insurance Co., Ltd. 10,873,359 6.21
Samsung Corporation 5,917,362 3.38
Lee, Kun-Hee
and relatives 5,322,559 3.04
Seoul Bank 4,699,627 2.68
In addition, the Company is authorized to issue convertible
debentures and debentures with stock purchase options of
face values up to 4,000,000 million and 2,000,000 million,
respectively. The Company is authorized to issue depository
receipts free from any preemptive rights by shareholders.
Also, the Company is authorized to issue capital stock through
the exercise of stock options or general public subscription
and to domestic and foreign financial institutions for urgent
fund raising or to co-operating companies for technical
assistance free from any preemptive rights by shareholders.
The Company has a stock option plan under which options to
purchase shares of common stock may be granted to key
employees up to a maximum of 1% of issued shares per
employee by the approval of shareholders. No stock options
have been granted as of December 31, 1999.
The Company issued 9,580,000 shares of common stock for
cash at 51,300 per share on February 12, 1999 and
15,400,000 shares of common stock for cash at 69,900 per
share on June 25, 1999. In addition, the Company issued
1,461,359 shares of common stock upon the conversion of
foreign currency convertible bonds in the amount of
US$153,050,000 in 1999 (see Note 12). The cash proceeds in
excess of par value of 1,568,120 million were credited to
paid-in capital in excess of par value.
As of December 31, 1999, 675,972,431,000 (face value of
US$624,010,000) of convertible bonds are outstanding (see
Note 12). No debentures with stock purchase options have
been issued as of December 31, 1999.
2. Summary of Significant Accounting Policies:
The significant accounting policies followed by the Company in
the preparation of its financial statements in accordance with
Financial Accounting Standards of the Republic of Korea are
summarized below.
Transitional Presentation of Comparative Financial Statements -
In accordance with the transition clause of the revised financial
accounting standards generally accepted in the Republic of
Korea effective January 1, 1999, the Company has not
presented comparative financial statements for the year ended
December 31, 1999.
Basis of Financial Statement Presentation -
The official accounting records of the Company, on which the
Korean language financial statements are based, are maintained
in Korean Won in accordance with the laws and regulations of
the Republic of Korea.
NOTES TO FINANCIAL STATEMENTS
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