AJ Lucas Group annual report 2007-08

c) Employee share acquisition plan: The employee share acquisition plan (ESAP) is available to all eligible employees to acquire
ordinary shares in the Company for no consideration as a bonus component of their remuneration. The ESAP complies with current Australian tax
legislation, enabling permanent employees to have up to $1,000 of free shares per annum, in respect of an employee share scheme, excluded from
their assessable income.
Employees must have been employed by any entity within the Group for a minimum period of one year to be eligible. Shares issued under the ESAP
rank equally with other fully paid ordinary shares including full voting and dividend rights from the date they vest. No consideration for the shares is
receivable from the employees.
Shares are issued in the name of the participating employee and vest from the date of issue. However, they cannot be disposed of until the earlier of
3 years from the date of issue or the date their employment with the Group ceases. The Board has the discretion to vary this restriction. The ESAP has
no conditions that could result in a recipient forfeiting ownership of shares.
No shares were issued under this plan in either of the last two years and all shares previously issued under this plan were released from escrow in
previous years.
24. CAPITAL AND RESERVES
Reconciliation of movement in capital and reserves attributable to equity holders of the parent.
Employee equity
benefit reserve
$’000
Translation
reserve
$’000
Share capital
$’000
Retained
earnings/
(accumulated
losses)
$’000
Total equity
$’000
Consolidated
Balance at 1 July 2006 704 — 29,236 (7,704) 22,236
Total recognised income and expense — 306 — 6,396 6,702
Issue of ordinary shares — — 1,419 — 1,419
Equity settled share based payments 81 — — — 81
Balance at 30 June 2007 785 306 30,655 (1,308) 30,438
Balance at 1 July 2007 785 306 30,655 (1,308) 30,438
Total recognised income and expense — 274 — 13,468 13,742
Dividends to equity holders — — — (3,273) (3,273)
Issue of ordinary shares — — 23,382 — 23,382
Equity settled share based payments 871 — — — 871
Balance at 30 June 2008 1,656 580 54,037 8,887 65,160
Company
Balance at 1 July 2006 — — 29,236 (7,073) 22,163
Total recognised income and expense — — — (1,209) (1,209)
Issue of ordinary shares — — 1,419 — 1,419
Equity settled share based payments — — 81 — 81
Balance at 30 June 2007 — — 30,736 (8,282) 22,454
Balance at 1 July 2007 — — 30,736 (8,282) 22,454
Total recognised income and expense — — — 3,719 3,719
Dividends to equity holders — — — (3,273) (3,273)
Issue of ordinary shares — — 23,382 — 23,382
Balance at 30 June 2008 — — 54,118 (7,836) 46,282
Nature and purpose of reserves
Employee equity benefits reserve: The employee equity benefits reserve represents expense associated with equity settled compensation
under the employee management rights plan.
Translation reserve: The translation reserve comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations.
a year of milestones 53