<strong>KNM</strong> GROUP BERHAD I Annual Report 2012Directors’ Reportfor the year ended 31 December 2012 (cont’d)39Directors’ interestsThe interests and deemed interests in the shares and warrants of the Company and of its related corporations (otherthan wholly-owned subsidiaries) of those who were Directors at year end (including the interest of the spouses orchildren of the Directors who themselves are not Directors of the Company) as recorded in the Register of Directors’Shareholdings are as follows:Shareholdings in which Directorshave direct interests in the CompanyNumber of ordinary shares of RM1.00 eachAtAt1.1.2012 Bought Sold 31.12.2012Lee Swee Eng 12,426,186 9,643,455 – 22,069,641Dato’ Ab. Halim bin Mohyiddin 1,362,500 681,250 – 2,043,750Gan Siew Liat 4,197,500 2,098,750 – 6,296,250Chew Fook Sin 3,057,300 1,528,650 – 4,585,950Shareholdings in which Directorshave indirect interests in the CompanyLee Swee Eng 228,877,560 124,400,619 (2,000,000) 351,278,179Gan Siew Liat 228,877,560 124,400,619 (2,000,000) 351,278,179Chew Fook Sin 17,960,727 8,980,363 (2,000,000) 24,941,090Shareholdings in which a Directorhas direct interest in a subsidiary- KPS Technology & Engineering LLCLee Swee Eng 100,000 – – 100,000Warrantholdings in which Directorshave direct interests in the CompanyNumber of warrants over the ordinary sharesof RM1.00 eachAtAt1.1.2012 Bought Sold 31.12.2012Lee Swee Eng – 9,643,455 – 9,643,455Dato’ Ab. Halim bin Mohyiddin – 681,250 – 681,250Gan Siew Liat – 2,098,750 – 2,098,750Chew Fook Sin – 1,528,650 – 1,528,650Warrantholdings in which Directorshave indirect interests in the CompanyLee Swee Eng – 124,400,619 (3,000,000) 121,400,619Gan Siew Liat – 124,400,619 (3,000,000) 121,400,619Chew Fook Sin – 8,980,363 (3,000,000) 5,980,363By virtue of their interests in the Company, Lee Swee Eng, Gan Siew Liat and Chew Fook Sin are also deemed tohave interests in the subsidiaries during the financial year to the extent that <strong>KNM</strong> Group Berhad has an interest.None of the other Directors holding office at 31 December 2012 had any interest in the ordinary shares and warrantsof the Company and of its related corporations during the financial year.
40<strong>KNM</strong> GROUP BERHAD I Annual Report 2012Directors’ Reportfor the year ended 31 December 2012 (cont’d)Directors’ benefitsSince the end of the previous financial year, no Director of the Company has received nor become entitled to receiveany benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivableby certain Directors as shown in the financial statements or the fixed salaries of full time employees of the Companyor of related corporation) by reason of a contract made by the Company or a related corporation with the Director orwith a firm of which the Director is a member, or with a corporation in which the Director has a substantial financialinterest, other than as disclosed in Note 27 to the financial statements.There were no arrangements during and at the end of the financial year which had the object of enabling Directorsof the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or anyother body corporate.Issue of shares and debenturesDuring the financial year, the Company:a) increased its authorised share capital from RM1,250,000,000 comprising 1,250,000,000 ordinary shares ofRM1.00 each to RM2,250,000,000 by the creation of an additional 1,000,000,000 new ordinary shares ofRM1.00 each.b) issued 488,920,659 new ordinary shares of RM1.00 each via a renounceable two-call rights issue for a totalconsideration of RM488,920,659 where the first call of RM0.40 is payable in cash on application and thesecond call of RM0.60 is to be capitalised from the Company’s Share Premium account (“2012 Rights IssueExercise”).The ordinary shares issued rank pari passu in all respect with the existing shares of the Company.There were no other changes in the authorised, issued and paid-up capital of the Company during the financial year.There were no debentures issued during the financial year.Options granted over unissued sharesNo options were granted to any person to take up unissued shares of the Company during the year apart from theissuance of warrants during the financial year.In November 2012, the Company issued 488,920,659 free warrants on the basis of one (1) free Warrant for everyone (1) Rights share subscribed for in the 2012 Rights Issue Exercise. The Warrants are constituted by a Deed Polldated 4 October 2012 and were listed on Bursa Malaysia Securities Berhad on 20 November 2012.The main features of the Warrants are as follows:a) Each warrants will entitle its registered holder during the exercise period to subscribe for one (1) new ordinaryshare at the exercise price, which has been fixed at RM1.00 per share subject to adjustments in accordancewith the provisions of the Deed Poll dated 4 October 2012 constituting the warrants.b) The warrants may be exercised at any time on or after 16 November 2012 until the end of the tenure of theWarrants. The tenure of the warrants is for a period of five (5) years. Warrants not exercised during the exerciseperiod shall thereafter lapse and cease to be valid for any purpose.