Fraser & Neave Holdings Bhd Annual Report 2020

193 06 financial statements ANNUAL REPORT 2020 Notes to The Financial Statements (Cont’d.) 16. CAPITAL AND RESERVES (CONTINUED) (C) SHARES HELD BY SGP TRUST Group and Company 2020 2019 Number of shares ’000 RM’000 Number of shares ’000 RM’000 At 1 October 2019/2018 204 3,904 131 4,039 Acquired 214 7,184 147 5,023 Transfer from treasury shares (Note 16(B)) – – 237 1,716 Reissued pursuant to SGP (278) (6,400) (311) (6,874) At 30 September 140 4,688 204 3,904 The Company established a trust (“SGP Trust”) for its eligible executives pursuant to the SGP. The SGP Trust is administered by an appointed trustee. The trustee will be entitled from time to time to accept financial assistance from the Company upon such terms and conditions as the Company and the trustee may agree to purchase shares in the Company from the open market for the purposes of this trust. The shares purchased for the benefit of SGP holders are recorded as “Shares held by SGP Trust” in the Group’s and the Company’s financial statements as a deduction in arriving at the shareholders’ equity. Details of the shares acquired during the current and previous financial year are as follows: Share price (RM) Number of shares ’000 Total consideration RM’000 Lowest Highest Average 2020 31.10 34.86 33.57 214 7,184 2019 33.28 34.60 34.12 147 5,023 (D) SHARE GRANTS UNDER RSP AND PSP (COLLECTIVELY, THE “SGP”) The Company’s SGP which is governed by its by-laws, was approved by Bursa Malaysia Securities Berhad on 20 December 2011 and subsequently approved by the shareholders at the Extraordinary General Meeting held on 13 January 2012. The SGP is valid for 10 years from 15 March 2012 to 14 March 2022. Under the RSP and PSP, the Company grants a base number of conditional share awards (the “Base Award”) to eligible participants annually. The Base Award represents the right to receive fully paid ordinary shares of the Company, their equivalent cash value or combinations thereof, free of charge, provided that certain prescribed performance conditions are met. The Remuneration Committee, as administrator of the SGP, has absolute discretion in granting the Base Award. The RSP Base Award is conditional on the achievement of pre-determined targets set for a two-year performance period and the PSP Base Award is conditional on the achievement of pre-determined targets set for a three-year performance period. The final number of RSP Shares and PSP Shares to be awarded will be determined at the end of the relevant performance period (“Final Award”). RSP Information regarding the RSP: (i) Depending on the achievement of pre-determined targets set for a two-year performance period for the RSP, the final number of RSP shares awarded could range between 0% to 150% of the initial grant of the RSP Base Award. (ii) At the end of the two-year performance period, 50% of the RSP shares under the Final Award will be released to the participants upon vesting. The balance will be released equally over the subsequent two years upon fulfilment of service requirements.