Notes 11-15

• 11. Capital
• 12. Reserve balances
• 13. Reserve movements
• 14. Minority equity
• 15. Cash and liquid deposits

Back to top 11. Capital

All ordinary shares are issued and fully paid, and carry equal rights in respect of voting, dividend payments and distribution upon winding up. The shares have no par value. Costs directly attributable to the issue of new shares are shown as a deduction from the proceeds. Shares held by the trustee of the Fletcher Building executive performance share scheme are deducted from the group’s capital until the shares vest, are reissued or otherwise disposed of. When such shares do vest, are reissued or otherwise disposed of, any consideration received is included in the group’s equity.

Share options:
On 1 September 2006, the company issued 500,000 share options under the executive option scheme. The exercise price of the share options is $9.24 and is increased annually by the company’s cost of capital, less actual dividends paid. As at 30 June 2009 the exercise price is $9.7319. The restrictive period is until 1 September 2009 and the final exercise date is 1 September 2012. The options carry no dividend or voting rights. The company has calculated the fair value of granting these options and is expensing the cost of $615,000 over three years to an option premium reserve.

Back to top12. Reserve balances

Back to top13. Reserve movements

Back to top 14. Minority equity

Back to top15. Cash and liquid deposits

The group operates in a number of foreign jurisdictions which have onerous regulatory requirements that are required to be met before a subsidiary may transfer funds to its parent in the form of cash dividends or to repay loans and advances.