72 / 136
Notes to the Financial Statements
Washington H. Soul Pattinson and Company Limited
Annual Report 2016
70
5
Group Structure and Performance
NOTE 5
SHARE CAPITAL AND CAPITAL MANAGEMENT
Accounting policy –
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction net of tax, from the proceeds. The amounts of any capital returns are
applied against share capital.
Group and Parent company
Group and Parent company
2016
2016
2015
2015
No of shares
$’000
No of shares
$’000
Fully paid ordinary shares
239,395,320
43,232
239,395,320
43,232
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in
proportion to the number of and amounts paid on the shares held. On a show of hands every holder of ordinary
shares present at a meeting in person or by proxy is entitled to one vote, and upon a poll each share is entitled to
one vote. Ordinary shares have no par value.
Capital Management
The Group’s capital management approach is conservative with the objective to maintain a strong capital base
in order to maintain investor, creditor and market confidence and to sustain the future development of the
Consolidated entity.
There were no changes to the Group’s approach to capital management during the year.
The Group’s capital consists of shareholders’ equity net of debt. The movement in shareholders equity is shown in
the statement of changes in equity. Refer to page 53.
At 31 July 2016, the Parent company had no external borrowings from financial institutions and is not subject to
any externally imposed capital requirements. The Parent company has accepted deposits from Directors and their
related parties totalling $49.861 million (2015: $47.326 million). Refer to note 23.
In the current year, non-recourse debt of $22.825 million was used to finance investment properties held within
100% controlled entities. Refer to note 23a.
The Board declares dividends having regard to the Parent company’s regular operating cash flows, refer to note 1.