Vtech 2010 Annual Report Download - page 58

56 VTech Holdings Ltd Annual Report 2010
Notes to the Financial Statements
18 Share Capital and Share Options
(a) Share Capital
2010 2009
US$ million US$ million
Authorised
Ordinary shares:
400,000,000 (2009: 400,000,000) of US$0.05 each 20.0 20.0
2010 2010 2009 2009
No. of shares US$ million No. of shares US$ million
Issued and fully paid
Ordinary shares of US$0.05 each:
At 1 April 245,852,133 12.3 242,577,133 12.1
Shares issued upon exercise of share options 1,138,000 0.1 3,275,000 0.2
At 31 March 246,990,133 12.4 245,852,133 12.3
Note: Subsequent to the balance sheet date and up to 14 June 2010, the issued and fully paid share capital of the Company was increased to 247,100,133
ordinary shares upon the exercise of 110,000 share options.
(b) Share Options
Pursuant to the share option scheme adopted on 10 August 2001
(the “2001 Scheme”), the directors are authorised, at any
time during the 10 years from the date of adoption of the
2001 Scheme, to grant options to full time employees of the
Company or subsidiaries of the Group, including executive
directors (but excluding non-executive directors) or any other
person who devotes substantially all of his/her time and efforts
to the business, management and operation of the Company
and/or any subsidiary of the Group to subscribe for shares in
the Company at prices to be determined by the directors in
accordance with the requirements of the Listing Rules. The basis
of determination of the exercise price shall be the higher of
the closing price of the shares of the Company as stated in the
Hong Kong Stock Exchange’s daily quotation sheet on the date
of grant, which must be a business day; and the average closing
price of the shares of the Company as stated in the Hong Kong
Stock Exchange’s daily quotation sheet for five business days
immediately preceding the date of grant.
Pursuant to Chapter 17 of the Listing Rules, the Company can
issue options so that number of shares that may be issued upon
exercise of all options to be granted under the schemes does
not in aggregate exceed 10% of the relevant class of shares in
issue from time to time. The Company may renew this limit at
any time, subject to shareholders’ approval and the issue of a
circular. The Company may also seek separate shareholders’
approval for granting options beyond the 10% limit to eligible
employees specifically identified by the Company, subject to
shareholders’ approval and the issue of a circular. The Company
can issue options so that shares to be issued upon exercise of
all outstanding options does not exceed 30% of the relevant
class of shares in issue from time to time. Subject to the further
restrictions in the Listing Rules concerning grant of options to
substantial shareholders, the maximum entitlement for any
one eligible employee is that the total number of shares issued
and to be issued upon exercise of options granted and to be
granted in any 12-month period up to the date of the last grant
does not exceed 1% of the relevant class of shares in issue. The
Company can grant further options in excess of this limit, subject
to shareholders’ approval (with that eligible employee and his
associates abstaining from voting) and the issue of a circular.
The offer of a grant of options may be accepted within 30 days
from the date of offer, upon payment of a non-refundable sum
of HK$1.0 by the grantee. The 2001 Scheme has a life of 10 years
and will expire on 9 August 2011.