Creative 2010 Annual Report Download - page 49

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CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
24. SHARE CAPITAL AND TREASURY SHARES
Number of ordinary shares Amount
Issued share Treasury Share Treasury
capital shares capital shares
’000 ’000 US$’000 US$’000
Group and Company
2010
Beginning of nancial year 75,000 (6,109) 266,753 (21,475)
Utilisation of treasury shares for shares issued
under employee options plans and performance
share plan – 684 – 2,353
End of nancial year 75,000 (5,425) 266,753 (19,122)
2009
Beginning of nancial year 83,626 (6,981) 300,100 (32,113)
Purchase of treasury shares - (7,756) - (22,719)
Utilisation of treasury shares for shares issued
under employee options plans - 2 - 10
Cancellation of treasury shares (8,626) 8,626 (33,347) 33,347
End of nancial year 75,000 (6,109) 266,753 (21,475)
All issued ordinary shares are fully paid. There is no par value for these ordinary shares.
(a) Treasury shares
The Company did not acquire any shares during the nancial year ended 30 June 2010. In the prior nancial year, the
Company acquired 7,756,000 shares in the Company through purchases on the SGX-ST. The total amount paid to acquire
the shares was US$22,719,000 and this was presented as a component within shareholders’ equity.
The Company re-issued 7,000 (2009: 2,000) treasury shares during the nancial year pursuant to the Creative Technology
(1999) Share Option Scheme (“1999 Scheme”) at the exercise price of US$3.58 (2009: US$2.92) each, for a total cash
consideration of US$21,000 (2009: US$10,000). The Company also re-issued 677,000 (2009: Nil) treasury shares during
the nancial year pursuant to the Creative Performance Share Plan.
(b) Share options
The Creative Technology (1999) Share Option Scheme (“1999 Scheme”) was approved by shareholders at an Extraordinary
General Meeting on 30 December 1998 which allows options to be granted to full-time employees as well as consultants and
non-executive directors. The total number of shares that may be granted under the 1999 Scheme is 7.5 million, provided
that such amount shall be automatically increased on the rst day (1 July) of each of the ve nancial years ended 30
June 2001, 2002, 2003, 2004 and 2005 by four percent of the issued share capital of the Company as at the last day of the
immediate preceding nancial year. The Option Committee has the discretion to decide the vesting schedule in the letter of
offer. If it is not specically stated in the letter of offer, 1/4 of the total amount of the grant vests on the rst anniversary
of the grant date and 1/48 of the total amount of the grant vests on the last day of each calendar month thereafter.
The exercise price of the options is determined at the average of the closing prices of the Company’s shares as quoted on
the SGX-ST or the National Association of Securities Dealers Automated Quotations (“NASDAQ”) for ve market days
preceding the date of the grant.
Options expire after the tenth anniversary of the date of grant, except in the case of options granted to participants other than
employees, options expire not later than the fth anniversary of the date of grant. Effective 12 November 2007, amendments
were made to the 1999 Scheme to allow the use of treasury shares to satisfy share based exercises. The options under the
1999 Scheme do not entitle the holders of the options, by virtue of such holdings, to any right to participate in any share
issue of any other company.