FGV Audited Financial Statements 2020

DIVIDENDS Dividends on ordinary shares paid or declared by the Company since 31 December 2019 are as follows: RM’000 In respect of the financial year ended 31 December 2019: - Final single tier dividend of 2.0 sen per share, paid on 15 July 2020 72,963 On 26 February 2021, the Board of Directors agreed to declare the payment of a final single tier dividend of 3.0 sen per ordinary share amounting to RM109.44 million, which is not taxable in the hands of the shareholders pursuant to paragraph 12B of Schedule 6 of the Income Tax Act, 1967. RESERVES AND PROVISIONS All material transfers to or from reserves or provisions during the financial year are shown in the financial statements. LONG TERM INCENTIVE PLAN The Company established a long term incentive plan (“LTIP”) in the form of employee share grant scheme which is governed by the By-Laws which was approved on 3 February 2016. Pursuant to the LTIP, the Company shall award the grant of up to 10% of the issued and paid-up ordinary share capital of the Company (excluding treasury shares, if any) at any point of time during the duration of the LTIP, to the employees of the Company and its subsidiaries (“Group”) and Executive Director of the Company who fulfil the eligibility criteria as eligible employees and is administered by the LTIP Committee. The LTIP comprises restricted share (“RS”) grant and performance share (“PS”) grant which shall be in force for a period of 10 years commencing from 3 February 2016, being the effective date of the implementation of the LTIP. Details of the LTIP are disclosed in Note 54 to the financial statements. During the current and previous financial year, no RS under the LTIP was granted to eligible employees of the Group. Subject to the terms and conditions of the By-Laws, the employees shall be awarded of ordinary shares in the Company, after meeting the vesting conditions as set out in the letter of offer for the shares under the LTIP. The RS granted on 1 June 2018 had a three years vesting period and had fully vested or forfeited as at 31 December 2020. DIRECTORS’ BENEFITS During and at the end of the financial year, no arrangements subsisted to which the Company is a party, being arrangements with the object or objects of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate. Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than the benefits shown under Directors’ Remuneration) by reason of a contract made by the Company or a related corporation with the Directors or with a firm of which he/ she is a member, or with a company in which he/she has a substantial financial interest. Directors’ Report 3 Audited Financial Statements 2020