• Both special resolutions passed were registered shortly after
• Approval will be sought for a court order from the High Court
the meeting at which they were proposed and authorised by
for the revocation of the former special resolutions as soon as
shareholders. Implementation thereof took place in Aspen’s 1999 financial year;
possible; and • The Registrar of Companies has indicated that it will act on a
• These intangible assets and goodwill were not recognised as assets on Aspen’s balance sheet for the June 1999 to June 2005
Court order and the requisite approval by a majority of Aspen’s shareholders in registering the special resolution.
financial years; • Specific requirements now exist in respect of the way in which
Financial effects of the revocation of the special resolutions
intangible assets should be dealt with. IFRS 1, First-time adoption
As the adjustments required in terms of IFRS 1 have already been
of International Financial Reporting Standards, requires that
effected in the financial records of Aspen, the revocation of the special
IAS 38, Intangible Assets, should be applied retrospectively. In
resolutions will have no effect on the earnings, headline earnings, net
compliance herewith, Aspen has reinstated these assets, which
asset value or tangible net asset value of Aspen as reported for the
were previously written off against share premium and retained
financial years ended 30 June 2005 and 30 June 2006.
income in its balance sheet. No adjustment has been made to
Auditors
goodwill; • The accounting treatment effected to comply with IFRS 1
The auditors of the Company, PricewaterhouseCoopers Inc.,
comprised the passing of journal entries in the financial records
will continue in office in accordance with Section 270 (2) of the
of Aspen. This has been done by debiting intangible assets and
Companies Act, 1973.
crediting the share premium account and retained income with
Investments in subsidiaries
similar amounts; • The directors now wish to ensure that the legal treatment of the
The financial information in respect of the Company’s interest in
share premium account is brought into line as far as possible with
its subsidiaries is set out in notes 5 and 38 to the annual financial
the accounting position as described above;
statements.
• To achieve legal reinstatement of share premium, the directors of Aspen now wish to seek the revocation of the two special
Contracts
resolutions passed in January 1999 and June 1999. The directors
None of the directors and officers of the Company had an interest
believe that these revocations will in no way affect the rights,
in any contract of significance during the financial year, save as
obligations, interests or entitlements of any stakeholder of the
disclosed in note 37.
Company or of any third party; • Approval by the requisite majority of shareholders at Aspen’s annual general meeting by way of a new special resolution is necessary for the implementation of such revocation. Notice of such revocation is contained in special resolution 2 in the Notice of Annual General Meeting on page 137;
63
Aspen Annual Report 2006
