UOB Annual Report 2002 - United Overseas Bank

(c)
The interim dividend paid in specie was effected as follows:
(i) For every 1,000 shares held by shareholders, each shareholder received 40.88 ordinary shares of $1 each in the share capital
of Haw Par Corporation Limited (“Haw Par Shares”), fractions of a Haw Par Share disregarded, except that the Haw Par
Shares which would otherwise be distributed to Haw Par Corporation Limited pursuant to the distribution (in its capacity
as shareholder of the Bank) and the Haw Par Shares which would otherwise be distributed to Overseas Shareholders
pursuant to the distribution were dealt with in the manner described in the circular to shareholders of the Bank dated
11 November 2002; and
(ii)
The resultant fractional Haw Par Shares were aggregated and would be sold for the benefit of the Bank.
The dividend was accounted for at the market value of the Haw Par Shares distributed on the books closure date.
(d)
In each financial year, the Group and the Bank transfer a certain amount of retained profits to general reserves. These general
reserves have not been earmarked for any particular purpose.
(e) The revenue reserves of the Group and the Bank are distributable except for the amount of $294,438,000 (2001: $248,724,000)
being the Group’s share of revenue reserves of associates which is distributable only upon realisation by way of dividend or
disposal of investments in the associates.
20 Share of Reserves of Associates
The Group
2002 2001
$'000
$'000
Balance at 1 January 537,354 519,469
Movements in other reserves of associates (374,356) 17,885
Realisation of reserves in income statements on divestment of an associate (19,621) –
Transfers on divestment of an associate:
To retained profits (7,231) –
To other non-distributable reserves (2,552) –
Balance at 31 December 133,594 537,354
The balance comprises the Group’s share of associates’ post-acquisition revenue reserves at 1 January 1998, and other reserves,
adjusted for goodwill arising from acquisition of associates prior to 1 January 2001. These reserves are non-distributable reserves
until they are realised by way of dividend from or divestment of the associates. In the year of realisation, revaluation reserves
previously brought into the Group without going through the consolidated income statement are recognised in the consolidated
income statement. In all other cases, they are transferred to other distributable or non-distributable reserves as appropriate.
The Group’s share of associates’ results after 1 January 1998 is included in revenue reserves of the Group.
UNITED OVERSEAS BANK 121