242 YINSON HOLDINGS BERHAD ACCOUNTABILITY 31. RESERVES (CONTINUED) (c) Share-based option reserve The share-based option reserve comprises the cumulative value of employee services received for the issue of share options by the Company. The fair value, measured at grant date of the share options granted to these employees is recognised as an employee expense in profit or loss and a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. (d) Share grant reserve The share grant reserve represents the cumulative value of employee services rendered for the issue of share awards under the LTIP and RSU Awards by the Company. The fair value of the expected share awards, measured at grant date of the LTIP and RSU Awards, is recognised as an expense in profit or loss with a corresponding increase in equity, over the expected period that the employees become unconditionally entitled to the Yinson Shares. (e) Put option reserve Put option reserve arises from the disposal of 26% equity interest in a subsidiary, where an option was granted to a noncontrolling interest to sell its equity stake back to the Group at their original consideration less dividends and proceeds from capital reduction received by them upon occurrence of conditions set out in the shareholders agreement. (f) Warrants reserve Warrants reserve arises from the issuance of free detachable warrants together with the Rights Issue and represents the allocation of the proceeds from the Rights Issue based on the fair value of the warrants at issuance date. The fair value of warrants is credited to a warrants reserve which is part of the Company’s equity. The warrants may be exercised at any time within the exercise period from 22 June 2022 to 21 June 2025, after which any warrants not exercised during the exercise period will thereafter lapse and cease to be valid. Each warrant entitles the registered holder to subscribe for one new ordinary share of the Company at an exercise price of RM2.29 per share. The new ordinary shares to be issued pursuant to the exercise of the warrants shall, upon allotment, issuance and full payment of the exercise price, rank pari passu in all respects with the then existing shares of the Company, save and except that the holders of such new shares shall not be entitled to any dividends, rights, allotments and/or other distributions which may be declared, made or paid to shareholders, the entitlement date of which is prior to the date of allotment and issuance of such new shares arising from the exercise of the warrants. 32. RETAINED EARNINGS The Company may distribute dividends out of its entire retained earnings as at 31 January 2025 under the single tier system.
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