FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 112 DIRECTORS’ REPORT DIVIDENDS Dividends on ordinary shares paid or declared by the Company since 31 December 2016 are as follows: RM’000 In respect of the financial year ended 31 December 2016: - Final single tier dividend of 1.0 sen per share, paid on 15 June 2017 36,484 In respect of the financial year ended 31 December 2017: - Interim single tier dividend of 5.0 sen per share, paid on 28 December 2017 182,406 218,890 The Board of Directors do not recommend payment of any final dividend in respect of the financial year ended 31 December 2017. RESERVES AND PROVISIONS All material transfers to or from reserves or provisions during the financial year are shown in the financial statements. SHARE CAPITAL The Companies Act 2016 (“2016 Act”) which came into effect on 31 January 2017 has repealed the Companies Act, 1965. The 2016 Act has abolished the concept of par or nominal value of shares and hence, the share premium, capital redemption reserve and authorised capital are abolished. In accordance with Section 618(2) of the 2016 Act, any amounts standing to the credit of the Company’s share premium account and capital redemption reserve of RM3,371,685,000 and RM10,052,000 respectively become part of the Company’s share capital upon commencement of the 2016 Act. There is no impact on the numbers of ordinary shares in issue or the relative entitlement of any of the members as a result of this transition. LONG TERM INCENTIVE PLAN The Company established a long term incentive plan (“LTIP”) in the form of employee share grant scheme which is governed by the By-Laws which was approved on 3 February 2016. Pursuant to the LTIP, the Company shall award the grant of up to 10% of the issued and paid-up ordinary share capital of the Company (excluding treasury shares, if any) at any point of time during the duration of the LTIP, to the employees of the Company and its subsidiaries (“Group”) and Executive Director of the Company who fulfil the eligibility criteria as eligible employees and is administered by the LTIP Committee. The LTIP comprises restricted share (“RS”) grant and performance share (“PS”) grant which shall be in force for a period of 10 years commencing from 3 February 2016, being the effective date of the implementation of the LTIP. Details of the LTIP are disclosed in Note 52 to the financial statements. During the financial year, 5,342,400 RS (2016: 859,800 RS) under the LTIP were granted to eligible employees of the Group. Subject to the terms and conditions of the By-Laws, the employees shall be awarded of ordinary shares in the Company, after meeting the vesting conditions as set out in the letter of offer for the shares under the LTIP. All RS granted during the financial year were vested other than those forfeited. The RS granted in previous financial year has a three years vesting period and the first vesting date was on 31 March 2017.