Sasbadi Annual Report 2019

PAGE 108 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 14. Capital and reserves (continued) 14.1 Share capital (continued) Employees’ share option scheme (“ESOS”) (continued) The Company has received all the relevant approvals, complied with the requirements pertaining to the ESOS, and submitted the final copy of the By- Laws of the ESOS to Bursa Malaysia Securities Berhad (“Bursa Securities”) pursuant to paragraph 6.42 of the Bursa Securities Listing Requirements on 1 September 2016. The implementation of ESOS is thus effective from 1 September 2016. Subsequent to year end, on 6 December 2019, the Company offered 10,000,000 options at an exercise price of RM0.17 each to its eligible employees under the ESOS. 14.2 Treasury shares The shareholders of the Company, by an ordinary resolution passed at the annual general meeting held on 29 January 2019, renewed their approval for the Company’s plan to purchase up to ten percent (10%) of number of issued shares at any point of time. The purchased shares are being held as treasury shares in accordance with the requirements under Section 127 of the Companies Act 2016. 14.3 Merger deficit The merger deficit comprises the differences between the cost of acquisition and the nominal value of shares acquired during the acquisition of Sasbadi Sdn. Bhd. in 2014. 14.4 Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of available-for-sale financial assets until the investments are derecognised or impaired. 14.5 Revaluation reserve The revaluation reserve relates to the revaluation of condominiums, leasehold land and buildings.