Air Canada 2010 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2010 Air Canada annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

2010 Air Canada Annual Report
122
11. SHAREHOLDERS’ EQUITY
The issued and outstanding common shares of Air Canada, along with the potential common shares, were as follows:
As at December 31 2010 2009
Issued and outstanding
Class A variable voting shares 64,275,209 56,586,112
Class B voting shares 214,697,175 221,560,947
Total issued and outstanding 278,972,384 278,147,059
Potential common shares
Warrants (refer to note below) 89,430,300 90,250,000
Stock options Note 10 3,287,931 3,963,474
Performance share units Note 10 2,500 561,846
Total potential common shares 92,720,731 94,775,320
The changes during 2010 in the number of issued and outstanding shares and their recorded value, net of issue costs, were
as follows:
For the year ended December 31, 2010 Number
of shares Value
Issued, beginning of year 278,147,059 $ 532
Shares issued on the exercise of stock options 5,625 -
Shares issued on the exercise of warrants 819,700 2
Issued, end of year 278,972,384 $ 534
Common Shares
As at December 31, 2010, the common shares issuable by Air Canada consist of an unlimited number of Class A Variable
Voting Shares (“Variable Voting Shares”) and an unlimited number of Class B Voting Shares (“Voting Shares”). The two
classes of common shares have equivalent rights as common shareholders except for voting rights. Holders of Variable
Voting Shares are entitled to one vote per share unless (i) the number of Variable Voting Shares outstanding, as a percentage
of the total number of voting shares of Air Canada exceeds 25% or (ii) the total number of votes cast by or on behalf
of holders of Variable Voting Shares at any meeting exceeds 25% of the total number of votes that may be cast at such
meeting. If either of the above noted thresholds would otherwise be surpassed at any time, the vote attached to each
Variable Voting Share will decrease proportionately such that (i) the Variable Voting Shares as a class do not carry more
than 25% of the aggregate votes attached to all issued and outstanding voting shares of Air Canada and (ii) the total
number of votes cast by or on behalf of holders of Variable Voting Shares at any meeting do not exceed 25% of the votes
that may be cast at such meeting.
Variable Voting Shares may only be held, beneficially owned or controlled, directly or indirectly, by persons who are not
Canadians (within the meaning of the Canada Transportation Act). An issued and outstanding Variable Voting Share shall be
converted into one Voting Share automatically and without any further act of Air Canada or the holder, if such Variable
Voting Share becomes held, beneficially owned and controlled, directly or indirectly, otherwise than by way of security only,
by a Canadian, as defined in the Canada Transportation Act.
Voting Shares may only be held, beneficially owned and controlled, directly or indirectly, by Canadians. An issued and
outstanding Voting Share shall be converted into one Variable Voting Share automatically and without any further act
of Air Canada or the holder, if such Voting Share becomes held, beneficially owned or controlled, directly or indirectly,
otherwise than by way of security only, by a person who is not a Canadian.