Singapore Airlines 2003 Annual Report Download - page 85

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14 Share Capital (in $ million)
The Group and
the Company
31 March
2003 2002
Authorized share capital
Ordinary shares
3,000,000,000 ordinary shares of $0.50 each 1,500.0 1,500.0
Special share
1 special share of $0.50 each # #
Preference shares
3,000,000,000 redeemable cumulative preference shares of $0.50 each 1,500.0 1,500.0
3,000.0 3,000.0
Issued and fully paid share capital
Ordinary shares
Balance at 1 April
1,218,143,622 of $0.50 each (2001: 1,220,197,622 of $1 each) 609.1 1,220.2
1,000 (2001-02: Nil) share options exercised during the year @ –
Nil (2001-02: 2,054,000) shares repurchased for cancellation during the year – (2.1)
Capital reduction to reduce par value from $1 each to $0.50 each – (609.0)
Balance at 31 March
1,218,144,622 of $0.50 each (2002: 1,218,143,622 of $0.50 each) 609.1 609.1
Special share
Balance at 1 April
1 of $0.50 each (2001: 1 of $1 each) # *
Capital reduction to reduce par value from $1 each to $0.50 each – #
Balance at 31 March
1 of $0.50 each (2002: 1 of $0.50 each) # #
609.1 609.1
@ The value is $500.
# The value is $0.50.
* The value is $1.
In July 2002, the Company issued 1,000 shares upon exercise of options granted under the Employee Share
Option Plan.
Pursuant to the share buyback scheme approved by shareholders, the Company purchased 2,054,000 ordinary
shares in 2001-02 at an average price of $12.48, amounting to a total cost, including brokerage, of $25.3 million.
There was no buyback of the Company's shares during the financial year.
In the previous financial year, 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.
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 each ($1.00 each prior
to the capital reduction) was issued to the Minister for Finance (Incorporated). 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.
83
SIA Annual Report 02/03
Notes to the Financial Statements
31 March 2003