Vtech 2011 Annual Report Download - page 54

52 VTech Holdings Ltd Annual Report 2011
Notes to the Financial Statements
17 Share Capital and Share Options
(a) Share Capital
2011
US$ million
2010
US$ million
Authorised
Ordinary shares:
400,000,000 (2010: 400,000,000) of US$0.05 each 20.0 20.0
2011
No. of shares
2011
US$ million
2010
No. of shares
2010
US$ million
Issued and fully paid
Ordinary shares of US$0.05 each:
At 1 April 246,990,133 12.4 245,852,133 12.3
Shares issued upon exercise of share options 1,306,000 – 1,138,000 0.1
At 31 March 248,296,133 12.4 246,990,133 12.4
Note: Subsequent to the balance sheet date and up to 31 May 2011, the issued and fully paid share capital of the Company was increased to 248,336,133 ordinary shares upon the
exercise of 40,000 share options.
(b) Share Options
Pursuant to the 2001 Scheme adopted on 10 August 2001, the
directors are authorised, at any time during the 10 years from
the date of adoption of the 2001 Scheme, to grant options to full
time employees of the Company or subsidiaries of the Group,
including executive directors (but excluding non-executive
directors) or any other person who devotes substantially all of
his/her time and efforts to the business, management and
operation of the Company and/or any subsidiary of the Group to
subscribe for shares in the Company at prices to be determined
by the directors in accordance with the requirements of the
Listing Rules. The basis of determination of the exercise price shall
be the higher of the closing price of the shares of the Company
as stated in the Stock Exchange’s daily quotation sheet on the
date of grant, which must be a business day; and the average
closing price of the shares of the Company as stated in the
Stock Exchange’s daily quotation sheet for five business days
immediately preceding the date of grant.
Pursuant to Chapter 17 of the Listing Rules, the Company can
issue options so that number of shares that may be issued upon
exercise of all options to be granted under the schemes does
not in aggregate exceed 10% of the relevant class of shares in
issue from time to time. The Company may renew this limit at
any time, subject to shareholders’ approval and the issue of a
circular. The Company may also seek separate shareholders’
approval for granting options beyond the 10% limit to eligible
employees specifically identified by the Company, subject to
shareholders’ approval and the issue of a circular. The Company
can issue options so that shares to be issued upon exercise of
all outstanding options does not exceed 30% of the relevant
class of shares in issue from time to time. Subject to the further
restrictions in the Listing Rules concerning grant of options to
substantial shareholders, the maximum entitlement for any
one eligible employee is that the total number of shares issued
and to be issued upon exercise of options granted and to be
granted in any 12-month period up to the date of the last grant
does not exceed 1% of the relevant class of shares in issue. The
Company can grant further options in excess of this limit, subject
to shareholders’ approval (with that eligible employee and his
associates abstaining from voting) and the issue of a circular. The
offer of a grant of options may be accepted within 30 days from
the date of offer, upon payment of a non-refundable sum of
HK$1 by the grantee. The 2001 Scheme has a life of 10 years and
will expire on 9 August 2011. On 31 May 2011, the Board resolved
to adopt a new share option scheme subject to approval by the
shareholders at the forthcoming annual general meeting.