Singapore Airlines 2002 Annual Report Download - page 78

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78
Notes to the Financial Statements
31 March 2002
SIA Annual Report 01/02
12 Share Capital (in $ million) (continued)
The Company
31 March
2002 2001
Issued share capital
Ordinary shares
Balance at 1 April
1,220,197,622 (2001: 1,250,532,222) of $1 each fully paid 1,220.2 1,250.5
Shares repurchased for cancellation during the financial year
2,054,000 (2000 - 01: 30,334,600) (2.1) (30.3)
Capital reduction from $1 each to $0.50 each (609.0) –
Balance at 31 March
1,218,143,622 of $0.50 each (2001: 1,220,197,622 of $1 each) fully paid 609.1 1,220.2
Special share
Balance at 1 April
1 of $1 each fully paid **
Capital reduction from $1 each to $0.50 each # –
Balance at 31 March
1 of $0.50 each (2001: 1 of $1 each) fully paid # *
609.1 1,220.2
# The value is $0.50.
* The value is $1.
Pursuant to the capital reduction approved by shareholders and sanction of the High Court of Singapore, the Company reduced the
par value of each issued ordinary share and the Special Share from $1.00 to $0.50. As a result, $609.0 million was returned to the
shareholders. The authorized share capital was also reduced to $3,000 million divided into 3,000,000,000 ordinary shares of $0.50
each, one Special Share of $0.50 and 3,000,000,000 redeemable cumulative preference shares of $0.50 each.
Pursuant to the share buyback scheme approved by shareholders, the Company purchased 2,054,000 (2000-01: 30,334,600)
ordinary shares during the financial year at an average price of $12.48 (2000-01: $15.70), amounting to a total cost, including
brokerage, of $25.3 million (2000-01: $476.0 million).
The Company’s ability to operate its existing route network and flight frequency is derived solely from and dependent entirely on the
Air Service Agreements (“ASAs”) concluded between the Government of Singapore and the governments of other countries. ASAs
are therefore critical to the Company’s operations. In almost all the ASAs, it is a condition that the Company must at all times be
“effectively controlled” and “substantially owned” by Singapore nationals for the tenure of the respective ASAs.
In order to comply with the above requirement, one non-tradeable Special Share of $0.50 ($1.00 prior to the capital reduction) was
issued to the Minister of Finance. The Special Share enjoys all the rights attached to ordinary shares. In addition, pursuant to Article 3A
of the Articles of Association, no resolution may be passed on certain matters without prior written approval of the Special Member.
Included in the authorized share capital are 3,000,000,000 non-tradable redeemable cumulative preference shares of $0.50 ($1.00
prior to the capital reduction) which carry full voting rights (“ASA shares”). When issued, the ASA shares will be partially paid to $0.01
each and will carry equal voting rights as those of ordinary shares, whether partially paid or otherwise. These shares will be issued only
when the directors determine that the Company’s operating rights under any of the ASAs are threatened by reason of the nationality of
the majority shareholders.