24. Shareholder's equity

Excel

2014

2013

No.

(€ in thousands)

No.

(€ in thousands)

AUTHORISED:

Ordinary shares

600,000,000

120,000

600,000,000

120,000

Preferred shares

300,000,000

60,000

300,000,000

60,000

900,000,000

180,000

900,000,000

180,000

ISSUED AND FULLY PAID:

Ordinary shares

223,569,822

44,714

222,176,212

44,435

In 2014, 1,393,610 shares were issued following the exercise of stock options and the restricted stock units by employees (2013: 281,200).

Reserves are freely distributable except for €172.9 million of legal reserves (2013: €130.6 million). Note F. Other reserves in the company financial statements provides an overview of the non-distributable reserves.

All shares have a par value of €0.20 per share (2013: €0.20 per share). Further information on the rights, restrictions and other conditions attached to ordinary and preferred shares is provided in the Corporate Governance section in the annual report.

The Corporate Governance section of this annual report provides a detailed description regarding the use of Foundation Continuity TomTom as a protective measure.

Management is of the opinion that the call option as described in the Corporate Governance section does not represent a significant value as meant in IAS 1, paragraph 31, due to the fact that the likelihood that the call option will be exercised is remote. In the remote event that the call option is exercised, the preferred shares that are issued are intended to be cancelled shortly after issuance (within 1 year period). The option is therefore not accounted for in the annual accounts, nor is any additional information as meant in IAS 32 and 39 provided.

Accounting policy

Share capital

Ordinary shares are classified as share capital.

Share premium

The share premium represents the amount by which the fair value of the consideration received exceeds the nominal value of shares issued. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.