16. CAPITAL AND RESERVES (CONTINUED) Warrant reserve (continued) The salient features of the Warrants are as follows: (continued) iv) The Warrant holders are not entitled to any voting rights or to participate in any distribution and/or offer of further securities in the Company until and unless such Warrant holders exercise their warrants for new shares in the Company. v) The Deed Poll and accordingly the Warrants, are governed by and shall be construed in accordance with the laws of Malaysia. The Warrants have lapsed on 30 July 2021 and removed from the Main Market of Bursa Malaysia Securities Berhad on 2 August 2021. Share option reserve The share option reserve comprises the cumulative value of employee services received for the issue of share options. When the option is exercised, the amount from the share option reserve is transferred to share capital. When the share option expires, the amount from the share option reserve is transferred to retained earnings. At an extraordinary general meeting held on 1 April 2021, the shareholders of the Company approved and established a new ESOS By-laws of up to 5% of the total number of issued shares of the Company at any point in time over the duration of the new ESOS to eligible Directors and employees of the Company and its subsidiaries (excluding dormant subsidiaries) (“Eligible Persons”). The salient features of the new ESOS are, inter alia, as follows: i) The allocation to any individual Eligible Person, who either individually or collectively, through persons connected with them, hold 20% or more of the total number of ordinary shares of the Company (excluding treasury shares), must not exceed 10% of the total number of new ESOS. ii) Not more than 50% of the total ordinary shares in the Company available under the new ESOS could be allocated, in aggregate to the Eligible Persons. iii) The new ESOS shall be in force for a period of five (5) years from the implementation date of 6 April 2021 and may be extended by the Board of Directors at its absolute discretion, without having to obtain approval from the shareholders of Company for a further period of up to 5 years, but not in aggregate exceeding 10 years from the implementation date or such longer period as may be allowed by the relevant authorities. iv) Subject to compliance with the Listing Requirements, guidelines or directives issued by Bursa Malaysia Securities Berhad and/or any of the relevant authorities, the Company may at any time during the duration of the ESOS terminate the ESOS and shall immediately announce to Bursa Malaysia Securities Berhad the effective date, number of ESOS and reasons for the termination. Financial Statements DAGANG NeXCHANGE BERHAD 254 NOTES TO THE FINANCIAL STATEMENTS
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