AVANCEON approves amendment in ESOS 2018, 2019

November 15, 2021 (MLN): The shareholders of Avanceon (AVN) during the Extraordinary General Meeting (EOGM) held on November 10, 2021, approved the amendment in the Employees Stock Option Scheme (ESOS) 2018 in order to accommodate eligible entrants for further options in the scheme.

The said amendment is made to remove the yearly cap of a number of options to be granted year-wise under Clause VIII of Regulation No. 7 of the Companies (Further Issue of Shares) Regulations, 2020, a notice issued to PSX said. 

Clause 7.1 of Employee Stock Option Scheme- 2018 would be substituted as the grant of an option to eligible employees in any one calendar year shall be restricted to the maximum of 1% of the paid-up capital of the company (as an increase from time to time excluding outstanding conversions).

However, any excess beyond 1% of the paid-up capital of the company shall require a separate resolution of the shareholders of the company under clause V(b) of regulation no. 7.

It was also clarified that if in any year, including commencement year, the number of grants as approved by the compensation committee is not granted then the un-granted options shall be carried forward to subsequent year(s).

Moreover, the committee, in its discretion may grant options to Eligible Employees including those presently in employment and those who join in the future. Whether further options are to be granted to any such employee who has already been granted Options in any one year will also be at the discretion of the committee.

The shareholder also resolved to accommodate eligible entrants for further / enhanced options in the scheme so as to remove the yearly cap of a number of options to be granted year-wise under Clause VIII of Regulation 7 of the Companies (Further Issue of Shares) Regulations, 2020, the clause 7.1 of Employees Stock Option Scheme 2019.

The Clause 7.1 of Employee Stock Option Scheme - 2019 to be substituted and read as follows:

Provided that the grant of an option to eligible employees in any one calendar year shall be restricted to the maximum of 1% of the paid-up capital of the company (as an increase from time to time excluding outstanding conversions).

It was also clarified that if in any year, including commencement year, the number of grants as approved by the compensation committee is not granted, then the un-granted options shall be carried forward to subsequent year(s).

Meanwhile, the committee, in its discretion may grant options to Eligible Employees including those presently in employment and those who join in the future. Whether further options are to be granted to any such employee who has already been granted Options in any one year will also be at the discretion of the committee, it said. 

Furthermore, it was also resolved to authorize Chief Executive Officer / Director and/or Company Secretary of the company jointly and/or severally, to execute any document(s) and to take all actions necessary to give effect to the proposed resolutions and implementation of the scheme(s).

Additionally, the shareholders also resolved that the Chief Executive Officer and/or the Company Secretary be are hereby authorized singly or jointly to take all necessary actions (including execution and delivery of all necessary instruments, notices, and letters), it noted.

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