FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
102
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
29 SHARE CAPITAL, TREASURY SHARES AND SHARE-BASED PAYMENTS (CONT’D)
(a) Share capital
The Company issued Nil (2014 : 294,000) and 190,000 (2014 : 260,000) ordinary shares pursuant to the
Company’s employee share option scheme at the exercise price of $Nil (2014 : $0.155) and $0.168 (2014 :
$0.168) each respectively. The cost of issuing new ordinary shares amounted to $32,000 (2014 : $89,000). The
newly issued shares rank pari passu in all respects with the existing ordinary shares.
The total consideration for the issue of new ordinary shares is as follow:
2015
$’000
2014
$’000
Exercise price paid by employees
32
89
Value of employee services
12
33
Total net consideration
44
122
Accordingly, a gain on re-issue of new ordinary shares of $12,000 (2014 : $33,000) is recognised in the capital
reserve.
(b) Treasury shares
In last financial year, the Company re-issued 2,360,000, 1,236,000 and 2,055,000 treasury shares during the
financial year pursuant to the Frencken Employee Share Option Scheme 2008 at the exercise price of $0.155,
$0.168 and $0.224 each respectively. The cost of treasury shares re-issued amounted to $1,411,000. The total
consideration (net of expense) for the treasury shares is as follows:
2015
$’000
2014
$’000
Exercise price paid by employees
-
1,034
Value of employee services
-
467
Total net consideration
-
1,501
Accordingly, a gain on re-issue of treasury shares of $90,000 was recognised in the capital reserve in year 2014.
(c) Share options
Share options were granted to executive directors and group employees who have been in the employment of
the Group for a period of at least twelve (12) months under the Frencken Employee Share Option Scheme 2008
(the “Scheme”), which became operative on 1 December 2008.
The exercise price of the options is determined at the average of the closing prices of the Company’s ordinary
shares on the Singapore Exchange for three (3) market days immediately preceding the date of the grant. The
vesting of the options is conditional on the executive director or employee of the Group completing another two
(2) years of service to the Group from the date of grant of options.
Once the options have vested, they are exercisable for a contractual option term of eight (8) years. The options
may be exercised in full or in part in respect of 1,000 shares or a multiple thereof, on the payment of the exercise
price. The persons to whom the options have been issued have no right to participate by virtue of the options in
any share issue of any other company. The Group has no legal or constructive obligation to repurchase or settle
the options in cash.
