Page 205 - TSMC 2018 Annual Report

Some of guarantee deposits were refunded to customers by offsetting related accounts receivable.
25. EQUITY
a. Capital stock
Authorized shares (in thousands) Authorized capital
Issued and paid shares (in thousands) Issued capital
December 31, 2018
28,050,000 $ 280,500,000 25,930,380 $ 259,303,805
December 31, 2017
28,050,000 $ 280,500,000 25,930,380 $ 259,303,805
A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options.
As of December 31, 2018, 1,068,157 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was 5,340,787 thousand shares (one ADS represents five common shares).
b. Capital surplus
Additional paid-in capital
From merger
From convertible bonds
From share of changes in equities of subsidiaries
From share of changes in equities of associates
Donations 29,343
$ 56,315,932
December 31, 2018
December 31, 2017
$ 24,184,939 22,804,510 8,892,847 118,792 289,240 19,208
$ 56,309,536
$
24,184,939 22,804,510 8,892,847 121,473 282,820
Under the relevant laws, the capital surplus generated from donations and the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of TSMC’s paid-in capital. The capital surplus from share of changes in equities of subsidiaries and associates and dividend of a claim extinguished by a prescription may be used to offset a deficit; however, when generated from issuance of restricted shares for employees, such capital surplus may not be used for any purpose.
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