Samsung 2000 Annual Report Download - page 56

December 31, 2000 and 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 Korea 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.
As of December 31, 2000, 152,441,599 shares of common stock and
23,893,427 shares of such preferred stock were issued and
outstanding.
As of December 31, 2000, major shareholders of the Company’s
stock, including preferred stock, and their respective shareholdings
are as follows:
In addition, the Company is authorized to issue convertible
debentures with face values of up to 4,000 billion (3,000 billion
for common stock and 1,000 billion for preferred stock) and
debentures with stock purchase options with face values of up to
2,000 billion (1,500 billion for common stock and 500 billion
for preferred stock). The Company is authorized to issue depository
receipts with the approval of the Board of Directors. 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 with the approval of
the Board of Directors.
The Company has a stock option plan under which options to
purchase shares of common stock may be granted to key
employees with the approval of shareholders. On March 16, 2000,
stock options were granted to 76 employees and directors (see
Note 18).
The Company issued 1,226,607 shares of common stock upon the
conversion of foreign currency convertible bonds in the amount of
US$146,930,000 during the year ended December 31, 2000 (see
Note 13). The cash proceeds in excess of par value of 123,500
million were credited to paid-in capital in excess of par value.
As of December 31, 2000, 546,427,650,000 (face value of
US$477,080,000) of convertible bonds are outstanding (see Note
13). No debentures with stock purchase options have been issued
as of December 31, 2000.
2. Summary of Significant Accounting Policies
The significant accounting policies followed by the Company in the
preparation of its financial statements in accordance with the
Financial Accounting Standards of the Republic of Korea are
summarized below.
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.
The accompanying financial statements have been extracted from
the Company’s Korean language financial statements that were
prepared using accounting principles, procedures and reporting
practices generally accepted in the Republic of Korea. These
standards vary from International Accounting Standards and the
accounting principles generally accepted in the country of the
reader. The financial statements have been translated from Korean
into English, and have been formatted in a manner different from
the presentation under Korean financial statement practices.
Certain supplementary information included in the Korean
language statutory financial statements, but not required for a fair
presentation of the Company’s financial position or results of
operations, is not presented in the accompanying financial
statements. Accordingly, the accompanying financial statements
are not intended to present the financial position, results of
operations and cash flows in accordance with accounting principles
and practices generally accepted in countries and jurisdictions
other than Korea.
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Notes to Financial Statements
Shareholder
Citibank N.A.
Samsung Life Insurance Co., Ltd.
Samsung Corporation
Lee, Kun-Hee and relatives
Seoul Bank
CMB-Europac Growth Fund
The Government of Singapore
CMB-CAP RE Emerg. Growth Fund
Korea Exchange Bank
CMB-ADIA
Number of
Shares
23,958,134
10,624,693
5,917,362
5,322,559
3,950,559
2,682,771
2,462,839
2,207,122
1,949,946
1,919,098
Percentage of
Ownership (%)
13.59
6.03
3.36
3.02
2.24
1.52
1.40
1.25
1.11
1.09