Ni Hsin Berhad Annual Report 2017

27. Related parties (continued) The key management personnel compensations are as follows: Group Company 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Directors: - Fees 365 255 215 255 - Remuneration 1,053 1,388 - 45 - Other short term employee benefits (including estimated monetary value of benefits-in-kind) 32 51 - 11 - Employee share options scheme (“ESOS”) - 3,584 - 3,584 1,450 5,278 215 3,895 28. Subsequent event The Company had, on 13 June 2016, established an Employees’ Share Option Scheme (“ESOS”) of up to fifteen percent (15%) of the issued and paid-up share capital to all eligible employees of the Ni Hsin Group for a period of 5 years. The ESOS will expire on 12 June 2021. The Company has granted 32,500,000 options with the exercise price of RM0.29 per share under the ESOS, whereby none of the options have yet to be exercised and therefore, there are no shares vested. On 28 November 2017 and 30 November 2017, the Company announced its intention to terminate the ESOS (“Proposed Termination”) based on the following: 1. The exercise price of the ESOS Options was RM0.29 per share. Based on the closing market price of the Company’s shares on 27 November 2017 of RM0.26, the ESOS Options were out-of-the-money; and 2. The Company is deliberating on alternative ways to reward the employees and Directors of Ni Hsin Group. The Company has obtained the written consent of all the grantees under the ESOS who have yet to exercise their options and on 25 January 2018, the Company held an Extraordinary General Meeting, wherein the majority of the shareholders present and voting thereat, voted in favour of the termination. Notes to the financial statements (continued) Annual Report 2017 91