directors - The Lion Group

(f) On 24 February 2005, the Company announced the following proposals:
(i) implementation of an Executive Share Option Scheme (“ESOS”) of up to 15% of the issued and paidup
capital of the Company for the executive Directors and executive employees of the Company and
its subsidiary companies who meet the criteria of eligibility for participation as set out in the Bylaws
of the ESOS (“Proposed ESOS”); and
(ii) increase of its authorised share capital from the existing RM750,000,000 comprising 750,000,000
ordinary shares of RM1 each to RM1,000,000,000 comprising 1,000,000,000 ordinary shares of
RM1 each by the creation of an additional 250,000,000 new ordinary shares of RM1 each in the
Company.
The aforesaid proposals were approved by the shareholders of the Company on 23 August 2005 and the
Proposed ESOS was implemented on 1 September 2005.
(g) On 18 March 2005, LFIB announced that LFIB entered into a conditional agreement with the Pemerintah
Kabupaten Malinau (the Regency Government of Malinau) (“PKM”) to set up a company (“JV Co”) for the
proposed development of 40,000 hectares of oil palm plantation and the construction of two crude palm
oil mills in the Malinau Regency, Kalimantan Timur, Republic of Indonesia with an equity ratio of 95:5
(“Proposed JV”).
The JV Co shall have a total registered and paid-up capital of USD5.0 million (equivalent to approximately
RM19.0 million).
The Proposed JV is subject to the approvals of the relevant authorities in Malaysia and the Republic of
Indonesia.
(h) On 21 June 2005, the Company announced that the proposal by AMSB to offer its scheme creditors the
opportunity to tender their debts for cancellation in consideration for shares in Amsteel Corporation Berhad,
a related party and Lion Diversified Holdings Berhad, an associated company, pursuant to the group wide
restructuring scheme (“GWRS”) was completed on 21 June 2005.
Further details of the tender exercise are disclosed in Note 10.
3. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements of the Company have been approved by the Board of Directors for issuance on 5 October
2005.
The financial statements of the Group and of the Company have been prepared in accordance with the provisions
of the Companies Act, 1965 and the applicable approved accounting standards in Malaysia.
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