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Notes to the Consolidated Financial Statements (continued)
For the year ended 31 December, 2012
(Expressed in Thousands of Trinidad and Tobago Dollars, except where otherwise stated)
18. Dividends
During the year, the Parent company wrote back nil (2011: $0.2 million) to retained earnings representing dividend
cheques which were not presented for payment for more than six years.
19. Employee share ownership plan (ESOP)
2012
2011
$
$
Employee share ownership plan
Number of shares held - unallocated (thousands)
3,752
3,752
Number of shares held - allocated (thousands)
3,953
3,953
7,705
7,705
Fair value of shares held - unallocated
5,590
6,716
Fair value of shares held - allocated
5,890
7,076
11,480
13,792
Cost of unallocated ESOP shares
25,299
25,299
Charge to earnings for shares allocated to employees
500
500
The Parent Company operates an Employee Share Ownership Plan (ESOP) to give effect to a contractual obligation to pay
profit sharing bonuses to employees via shares of the Parent Company based on a set formula. Employees may acquire
additional company shares to be held in trust by the Trustees but the costs of such purchases are for the employee’s
account. All permanent employees of the Parent Company and certain subsidiaries are eligible to participate in the Plan
that is directed, including the voting of shares, by a Management Committee comprising management of the Parent
Company and the general employee membership. Independent Trustees are engaged to hold in trust all shares in the
Plan as well as to carry out the necessary administrative functions.
Shares acquired by the ESOP are funded by the Parent Company’s contributions. The cost of the shares so acquired and
which remain unallocated to employees have been recognised in shareholders’ equity under ‘Unallocated ESOP Shares’.
All dealings in the shares will be credited against the same account at fair value. The fair value of shares was derived from
the closing market price prevailing on the Trinidad and Tobago Stock Exchange at the year-end.
20. Capital commitments and contingent liabilities
Capital commitments
The Group has contractual capital commitments of $7.6 million as at December 2012 (2011: Nil).
Contingent liabilities
There are contingent liabilities amounting to $10 million (2011: $22.5 million) for various claims, assessments, bank
guarantees, and bonds against the Group. Included therein, are several pending legal actions and other claims in which
the Group is involved. It is the opinion of the directors, based on the information provided by the Group’s attorneys at
law, that owing to the uncertainty of these possible liabilities no provision has been made in these financial statements in
respect of these matters.
