Annual Report 2012 - e-KONG Group Limited

e-KONG GROUP LIMITEDNotes to the Consolidated Financial Statements (continued)For the year ended 31 December 201228. SHARE OPTIONS (continued)(b) SubsidiariesOn 28 June 2002, the Company adopted scheme rules and procedures for share option schemes for itssubsidiaries (the “Subsidiary Scheme Rules and Procedures”). In accordance with the Subsidiary Scheme Rulesand Procedures, the subsidiaries may adopt their own respective share option schemes in line with the termsand conditions of the Subsidiary Scheme Rules and Procedures, pursuant to which the board of directorsof each of the relevant subsidiaries may at its discretion grant share options to (i) any director, employee,consultant, customer, supplier, business introduction agent, or legal, financial or marketing adviser of orcontractor to that subsidiary and its subsidiaries, any of its holding companies or any affiliate and / or (ii)any discretionary trust the discretionary objects of which include any of the foregoing. No subsidiaries haveactivated their share option scheme powers pursuant to the terms and conditions of the Subsidiary SchemeRules and Procedures since adoption.The share option scheme expired on 28 June 2012. During the year, no share options were granted / forfeited/ exercised and there were no share options outstanding / exercisable on 28 June 2012 or at the end of thereporting period.Summary of principal termsA summary of the principal terms of the share option scheme of the Company and Subsidiary Scheme Rules andProcedures is as follows:(i)PurposeThe schemes are designed to enable the board to grant share options to eligible participants as (i) incentivesand / or rewards in recognition or acknowledgement of the contributions that eligible participants havemade and will make to the Group and (ii) motivation to worthy employees for high levels of performancein order to enhance long-term shareholder value.(ii) Maximum number of sharesThe total number of shares in respect of which share options may be granted (together with share optionsexercised and then outstanding) under the schemes and to be granted under any other share option schemesof the Company or the relevant subsidiary, shall not in aggregate exceed 10% of the shares in issue asat the date of approval of the schemes unless shareholder approval has been obtained. On 19 May 2009,shareholders of the Company approved a refreshment of the limit within which the total number of sharesmay be issued upon exercise of all options granted and to be granted under the share option schemes ofthe Company. As at 31 December 2012 and 2011, there were no outstanding share options under the shareoption scheme adopted by the Company.The maximum number of shares issued and which may fall to be issued upon the exercise of the share optionsgranted under the scheme and any other share option schemes (including both exercised and outstandingshare options) to each eligible participant shall not exceed 1% of the shares in issue for the time being inany 12 months period up to and including the date of grant.78Annual Report 2012