Page 69 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
63
Report of Directors
None of the directors of Aspire had any personal interests in options to subscribe for shares of Aspire granted under the
Aspire Scheme at the beginning and at the end of the year ended 31 December 2012.
No options were granted or exercised under the Aspire Scheme during the year ended 31 December 2012. Share options
involving 40,000 Aspire Shares have lapsed during the year ended 31 December 2012. The options granted are not
recognized in the financial statements until they are exercised.
Since the options granted pursuant to the Aspire Scheme are for the subscription of shares in Aspire which are not listed,
the value of the options granted is not required to be disclosed under the Hong Kong Listing Rules.
In any event, since (i) the shares in Aspire are not listed, (ii) the options granted under the Aspire Scheme are not freely
transferable (and hence there is no open market for transacting these options); and (iii) the grantee of an option will also not
be able to charge, mortgage, encumber or create any interest in favour of any other person over or in relation to any option,
any valuation of the options will necessarily be based on subjective assumptions, and may not provide a reliable measure of
the fair value of the options and would potentially be misleading to the shareholders of the Company.
Apart from the foregoing, at no time during the year was the Company, any of its holding companies or subsidiaries, a party
for any arrangement to enable the directors or chief executive of the Company or any of their spouses or children under
eighteen years of age to acquire benefits by means of acquiring shares in or debentures of the Company or any other body
corporate.
Pre-IPO Share Option Scheme of China Mobile Hong Kong Company Limited
Pursuant to a resolution passed by the shareholders of China Mobile Hong Kong Company Limited (formerly known as China
Mobile Peoples Telephone Company Limited) (“CMHK”) on 4 March 2004, the pre-IPO share option scheme (the “CMHK
Pre-IPO Scheme”) was adopted to incentivize the then employees of CMHK.
No share options were granted under the CMHK Pre-IPO Scheme after the listing of CMHK on 31 March 2004 and no
further share options will be granted under the CMHK Pre-IPO Scheme. There were 70,000 shares covered by the share
options granted under the CMHK Pre-IPO Scheme which were outstanding at the beginning and at the end of the financial
year ended 31 December 2012. All the share options outstanding at the beginning of the year ended 31 December 2012
were granted to employees of CMHK on 11 March 2004, and the exercise price was HK$4.55 per share, being the offer
price of the shares of CMHK at the time of its initial public offering. All options granted under the CMHK Pre-IPO Scheme
have been vested. Grantees of the outstanding share options are entitled to exercise the share options from 11 March 2005
to 10 March 2014. No share options granted under the CMHK Pre-IPO Scheme have been exercised during the year ended
31 December 2012. No share options were cancelled or lapsed during the year ended 31 December 2012. The share
options outstanding as at 31 December 2012 were held by 7 individuals, 6 of whom have left the employment of CMHK.