Singapore Airlines 2004 Annual Report Download - page 84

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82 SIA Annual Report 03/04
Notes to the Financial Statements
31 March 2004
13 Share Capital (in $ million)
The Group and the Company
31 March
2004 2003
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
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
1,218,144,622 of $0.50 each (2002: 1,218,143,622 of $0.50 each) 609.1 609.1
NIL share options exercised during the year (2002-03: 1,000) – @
–––––––––––––––––––––––––––––––––
Balance at 31 March
1,218,144,622 of $0.50 each (2003: 1,218,144,622 of $0.50 each) 609.1 609.1
–––––––––––––––––––––––––––––––––
Special share
Balance at 1 April
1 of $0.50 each (2002: 1 of $0.50 each) # #
–––––––––––––––––––––––––––––––––
Balance at 31 March
1 of $0.50 each (2003: 1 of $0.50 each) # #
–––––––––––––––––––––––––––––––––
609.1 609.1
–––––––––––––––––––––––––––––––––
@ The value was $500.
# The value is $0.50.
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary
shares carry one vote per share without restriction.
In 2002-03, the Company issued 1,000 shares upon exercise of options granted under the Employee Share Option Plan.
There were no share options exercised during the financial year.
There was no buyback of the Company’s shares during the financial year, pursuant to the share buyback approved by
shareholders.
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 was issued to the
Ministry 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 each, 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.