KENANGA ANNUAL REPORT 2017

53. SIGNIFICANT EVENTS AND SUBSEQUENT EVENTS (CONT’D.) (3) Employees’ Share Scheme (“ESS”) On 21 September 2017, the Bank has established and implemented an ESS of up to 10% of the Bank’s total issued share capital (excluding Treasury shares) at any one time during the duration of the ESS scheme for the eligible employees and executive directors of KIBB and its non-dormant subsidiary companies which will be valid for a period of five (5) years from its commencement date, and may be extended for a further period of five (5) years. On 2 January 2018, the Bank has made an offer of options under the Employees’ Share Option Scheme (“ESOS”) to the eligible employees of KIBB and its non-dormant subsidiaries to subscribe for new ordinary shares in KIBB under the ESS. The total number of options offered are 49,579,000 and the exercise price is RM0.575. The Bank has not offered any employee share options as at 31 December 2017. In relation to options offered on 2 January 2018, any expenses incurred will be recognised in the income statement in the relevant period in the year subsequent to 31 December 2017 and any impact to the net asset and equity will be accounted for when the options are exercised. The following is the subsequent event of the Group subsequent to the financial year ended 31 December 2017: Issuance of Additional RM10,000,000 Subordinated Notes in January 2018 On 29 January 2018, the Bank issued second tranche of RM10 million Subordinated Notes under the RM250 million in nominal value Tier 2 Subordinated Note Programme which was established on 27 March 2017. The Subordinated Notes will pay a coupon of 6.6% per annum. The Subordinated Notes has a tenure of 10 years Non-Callable 5 years from the issue date and will mature on 29 January 2028 and a call date on 29 January 2023. The proceeds from the issuance of the Subordinated Notes will be utilised by the Bank as working capital. 54. DIRECTORS OF SUBSIDIARIES OF THE GROUP The following is the list of Directors who served on the Boards of the subsidiaries of the Group since the beginning of the current financial year to the date of the directors’ report: No Name of subsidiary Name of Directors 1 Kenanga Futures Luigi Fortunato Ghirardello Sdn Bhd (formerly Izlan Bin Izhab known as Kenanga Emmanuel, Dominique, Martial, Georges, Deutsche Futures Sdn Bhd) Faure (appointed on 18 September 2017) Sree Kumar A/L C K Nayar (appointed on 12 October 2017) Lum Chee Wah Azila Binti Abdul Aziz Lee Kok Khee (resigned on 18 September 2017) Michael James Connolly (resigned on 27 July 2017) Annual Report 2017 31 December 2017 223 notes to the financial statements