Singapore Airlines 2007 Annual Report Download - page 102

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NOTES TO THE FINANCIAL STATEMENTS
31 March 2007
Singapore Airlines 100 Annual Report 2006-07
13 Share Capital (in $ million)
The Group and the Company
2007 2006
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Issued and fully paid share capital
Ordinary shares
Balance at 1 April
1,224,704,750 shares (2005: 1,218,239,646 shares) 1,202.6 609.1
Transfer of share premium to share capital – 448.2
Transfer of capital redemption reserve to share capital – 64.4
22,128,620 share options exercised during the year 292.3 80.9
(2005-06: 6,465,104)
––––––––––––––––––––––––––––––––––––
Balance at 31 March
1,246,833,370 shares (2006: 1,224,704,750 shares) 1,494.9 1,202.6
––––––––––––––––––––––––––––––––––––
Special share
Balance at 1 April
1 (2005: 1) # #
––––––––––––––––––––––––––––––––––––
Balance at 31 March
1 (2006: 1 ) # #
––––––––––––––––––––––––––––––––––––
1,494.9 1,202.6
––––––––––––––––––––––––––––––––––––
# 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.
During the fi nancial year, the Company issued 22,128,620 shares (2005-06: 6,465,104) upon exercise of options granted
under the Employee Share Option Plan.
There was no buyback of the Company’s shares during the fi nancial year, pursuant to the share buyback approved by
shareholders.
The Company’s ability to operate its existing route network and fl ight 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 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.
The Company can also issue non-tradeable redeemable cumulative preference shares, which carry full voting rights
(“ASA shares”). When issued, the ASA shares will be paid at $0.01 each and will carry equal voting rights as those of
ordinary shares. 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.