RBS 2013 Annual Report Download - page 464
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Notes on the consolidated accounts
462
26 Share capital continued
Movement in allotted, called up and fully paid ordinary shares - thousands
A
t 1 January 2012 59,228,412
Shares issued (ordinary shares of 25p) 325,907
Share sub-division and consolidation (53,598,887)
Shares issued (ordinary shares of £1) 115,333
A
t 1 January 2013 6,070,765
Shares issued 132,257
A
t 31 December 2013 6,203,022
Notes:
(1) One dividend access share in issue.
(2) In June 2012, the ordinary shares of 25p each were initially sub-divided into 59,554,319,127 ordinary shares of 10p each and 59,554,319,127 deferred shares of 15p each. The deferred shares
created by virtue of the sub-division were cancelled with the nominal value transferred to capital redemption reserve. The 59,554,319,127 ordinary shares of 10p were consolidated into
5,955,431,912 ordinary shares of £1 each.
Ordinary shares
There is no authorised share capital under the company’s constitution.
The directors have the authority to issue £17.7 billion nominal of ordinary
shares in connection with a conversion of B shares. At 31 December
2013 they had a remaining authority granted at the 2013 Annual General
Meeting to issue up to £227 million nominal of ordinary shares other than
by pre-emption to existing shareholders.
During 2013, the company issued 53.7 million ordinary shares of £1 each
in connection with employee share schemes.
In July 2013, the company allotted and issued 43.0 million new ordinary
shares of £1 each at a subscription price of 314.188 pence each, the
gross proceeds being £135 million.
In September 2013, the company allotted and issued 20.5 million new
ordinary shares of £1 each at a subscription price of 341.898 pence each
the gross proceeds being £70 million.
In December 2013, the company allotted and issued 15.1 million new
ordinary shares of £1 each at a subscription price of 331.309 pence each,
the gross proceeds being £50 million.
B shares and dividend access share
In December 2009, the company entered into an acquisition and
contingent capital agreement with HM Treasury. HM Treasury agreed to
acquire at 50p per share 51 billion B shares with a nominal value of £0.01
each and a dividend access share with a nominal value of £0.01; these
shares were issued to HM Treasury on 22 December 2009. Net proceeds
were £25.1 billion.
The B shares do not generally carry voting rights at general meetings of
ordinary shareholders. Following the subdivision and consolidation of
ordinary shares in 2012 and subject to anti-dilution adjustments, each B
share is entitled to one tenth of the cash dividend of an ordinary share
and may be converted at any time at the option of the holder into ordinary
shares at the rate of ten B shares for each ordinary share.
HM Treasury has agreed not to convert its B shares into ordinary shares
to the extent that its holding of ordinary shares following the conversion
would represent more than 75% of the company's issued ordinary share
capital.
The dividend access share entitles the holder to dividends equal to the
greater of 7% of the aggregate issue price of B shares issued to HM
Treasury and 250% of the ordinary dividend rate multiplied by the number
of B shares issued, less any dividends paid on the B shares and on
ordinary shares issued on conversion. Dividends on the dividend access
share are discretionary unless a dividend has been paid on the ordinary
shares, in which case dividends became mandatory.
The dividend access share does not generally carry voting rights at
general meetings of ordinary shareholders and is not convertible into
ordinary shares.
Preference shares
Under IFRS certain of the Group's preference shares are classified as
debt and are included in subordinated liabilities on the balance sheet.
Other securities
Certain of the Group's subordinated securities in the legal form of debt
are classified as equity under IFRS.
These securities entitle the holders to interest which may be deferred at
the sole discretion of the company. Repayment of the securities is at the
sole discretion of the company on giving between 30 and 60 days notice.
Non-cumulative preference shares
Non-cumulative preference shares entitle the holders thereof (subject to
the terms of issue) to receive periodic non-cumulative cash dividends at
specified fixed rates for each Series payable out of distributable profits of
the company.
The non-cumulative preference shares are redeemable at the option of
the company, in whole or in part from time to time at the rates detailed in
the table below plus dividends otherwise payable for the then current
dividend period accrued to the date of redemption.