RBS 2003 Annual Report Download - page 220

Additional information continued
218
Additional information
Description of property and equipment (continued)
Freehold and long leasehold properties are revalued on a
rolling basis, each property being valued at least once every
five years. Interim valuations outwith the five year cycle are
carried out on properties where there is an indication that its
value has changed significantly, given market conditions. Any
increase or deficit on revaluation is reflected in the carrying
value of premises at that time. Any impairment in the value of
premises where there is a clear consumption of economic
benefits is charged in full to the profit and loss account. Other
impairments of premises are charged to the profit and loss
account after eliminating any previous revaluation surplus on
the premises. Any profit from the sale of revalued premises is
calculated by deducting the revalued amount from the net
proceeds. The revaluation of premises at 31 December 2003
resulted in a £69 million decrease in property revaluation reserves.
Total capital expenditure on premises, computers and other
equipment for the year ended 31 December 2003 was £2,613
million (2002 – £872 million; 2001 – £515 million).
Major shareholders
Details of major shareholders in the company’s ordinary and
preference shares are given on page 115.
With the exception of Santander Central Hispano S.A. which
sold 86.7 million ordinary shares shares representing 2.9% of
the company’s ordinary share capital on 25 November 2002,
there have been no significant changes in the percentage
ownership of major shareholders of the company’s ordinary
and preference shares during the three years ended 31
December 2003. All shareholders within a class of the
company’s shares have the same voting rights. The company is
not directly or indirectly owned or controlled by another
corporation or any foreign government.
At 18 February 2004, the directors of the company had options
to purchase a total of 1,686,815 ordinary shares of the company.
Santander Central Hispano, S.A. has agreed to vote its holding
of the company’s ordinary shares in accordance with the
recommendation or directions of the Board of directors of the
company.
As at 31 December 2003, 94% of the company’s US$
denominated preference shares were held by shareholders
registered in the US. All other shares were predominantly held
by shareholders registered outside the US.
Material contracts
The company and its subsidiaries are party to various
contracts in the ordinary course of business. For the year
ended 31 December 2003, there have been no material
contracts entered into outside the ordinary course of business.