Ntegrator International Ltd. - Annual Report 2020

85 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 20. Share capital and treasury shares (continued) (a) Treasury shares The Company did not acquire any of its shares in the open market during the financial years ended 31 December 2020 and 2019. (b) Performance share plan The Company implemented the Ntegrator Performance Share Plan (the “PSP”) in 2010 which was approved at the Extraordinary General Meeting (“EGM”) held on 12 February 2010. The PSP provides for the award of fully paid-up ordinary shares in the share capital of the Company, free of charge to selected employees of the Company and/or its subsidiary corporations, including the directors of the Company, and other selected participants when and after pre-determined performance target(s) have been accomplished within the performance period. The PSP is a share incentive scheme which will allow the Company, inter alia, to target specific performance objectives and to provide an incentive for participants to achieve these targets. The directors believe that the PSP will help to achieve the following positive objectives: (i) incentivise employees to excel in their performance and encourage greater dedication and loyalty to the Group; (ii) attract and retain employees whose contributions are important to the long-term growth and profitability of the Group; (iii) recognise and reward past contributions and services and motivate employees to continue to strive for the Group’s long-term prosperity; and (iv) develop a participatory style of management which instils loyalty and a stronger sense of identification with the long-term goals of the Group. The PSP is administered by the RC which comprises three directors, namely Lai Chun Loong, Charles George St. John Reed and Lee Keen Whye. The PSP shall continue in force at the discretion of the RC, subject to a maximum period of ten (10) years commencing on the date on which the PSP was adopted by the Company in EGM, provided always that the PSP may continue beyond the above stipulated period with the approval of shareholders by ordinary resolution in general meeting, and of any relevant authorities which may then be required. The Company may deliver shares pursuant to awards granted under the PSP by way of: (i) issuance of new shares; and/or (ii) delivery of existing shares purchased from the market or shares held in treasury. The total number of ordinary shares over which the Company may grant under the PSP shall not exceed 15% of the issued share capital of the Company on the day preceding the date of grant. In 2010, a share award under the PSP was granted to employees and directors of the Group on 22 March 2010 in accordance with the approval by shareholders at the EGM on 12 February 2010.