Sasbadi Annual Report 2020

SASBADI HOLDINGS BERHAD 110 FINANCIAL STATEMENTS (continued) 16. Capital and reserves (continued) 16.2 Treasury shares The shareholders of the Company, by an ordinary resolution passed at the annual general meeting held on 13 February 2020, renewed their approval for the Company’s plan to purchase up to ten percent (10%) of the total 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. 16.3 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. 16.4 Fair value reserve The fair value reserve comprises the cumulative net change in the fair value of equity instruments designated at fair value through other comprehensive income until the investments are derecognised or impaired. 16.5 Revaluation reserve The revaluation reserve relates to the revaluation of condominiums, leasehold land and buildings. 16.6 Share option reserve The share option reserve comprises the cumulative value of employee services received for the issue of share options. Employees’ share option scheme (“ESOS”) The salient features of the Company’s ESOS are, inter alia, as follows: i) The maximum number of shares which may be issued and allotted pursuant to the ESOS shall not exceed 10% of the total number of issued shares of the Company (excluding treasury shares, if any), at any point of time during the duration of the ESOS; ii) Any employee or executive director of the Group is eligible to participate in the ESOS provided that, as at the date of offer: a) The employee or executive director is a Malaysian citizen who has attained eighteen (18) years of age; b) The employee or executive director is not an undischarged bankrupt nor subject to any bankruptcy proceedings; c) The employee or executive director must have been confirmed in service and have served at least six (6) months in the employment of the Group;