Ordinary share meaning

In this issue: Corporate governance Q&As New and revised content Key dates for your diary Weekly highlights across other practice areas Corporate governance ISS Governance has released its 2025 Proxy Voting Guidelines for the UK and Ireland, following the publication of its updated benchmark policies on 17 December 2024 (see: Share Incentives weekly highlights—19 December 2024—Corporate governance), and these will apply to shareholder meetings held on or after 1 February 2025. The revised guidelines mirror the changes announced in December, many of which incorporated amendments made by the Investment Association (IA) to its Principles of Remuneration issued in October 2024. Nonetheless, departing from the new IA Principles, ISS Governance considers a 5 per cent dilution limit to remain widely viewed as best practice by many investors—and therefore expects that authorisations to issue new shares under discretionary share schemes should not exceed 5 per cent of the issued ordinary share capital over any rolling ten-year period; where this is breached, an...

What is the Panel proposing? The measures outlined in consultation paper PCP 2025/1 aim to revise the Takeover Code (the Code) in three specific areas, as set out in that paper. Some principal elements of the suggested changes to these areas are summarised below, for reference and clarity within the consultation. Dual class share structures A company operating a dual class share structure (DCSS) has capital made up of a class of voting ordinary shares alongside a class of shares—i.e., ‘class B’ or ‘special’ shares—carrying superior voting power or control relative to the company’s ordinary shares...

In this issue: Employment law issues Tax treatment New content Useful Information Trackers Dates for your diary Weekly highlights from other practice areas Employment law issues Uncapped unfair dismissal—why bonus and equity are now central to exit risk Employment analysis: The Employment Rights Act 2025 was passed just before Christmas and employers are now preparing for its reforms, which will take effect in stages from as early as February 2026. Among the most significant changes for reward is the removal of the statutory cap on the compensatory award for unfair dismissal (currently the lesser of 52 weeks’ gross pay and £118,223). The risk is not merely “larger tribunal awards”. The true change is commercial: once ordinary unfair dismissal is no longer limited by a statutory ceiling, the value of claims becomes more fact-driven. That brings bonus and equity to the centre of quantum, settlement dynamics and, in practice, board-level decision-making. Nigel Watson of Burges Salmon considers...

The company establishing a SIP The company setting up a share incentive plan (SIP) does not need to be the same entity whose shares are allocated. However, both: the shares to be granted, and the connection between the SIP-establishing entity and the company whose shares are issued must satisfy the relevant legislative conditions. A SIP can be created either: solely for employees of the company that establishes it; or for those employees and for employees of other companies it controls (a group plan)—see Constituent companies below. In a group where the parent company’s shares are to be awarded, there are two options: the parent company may establish the SIP and extend it to the appropriate subsidiaries; or each subsidiary may establish its own SIP, provided the other statutory requirements concerning the shares under award are met—see Requirements for the shares. The advantage of each subsidiary operating its...

Pre-emption rights on allotment Pre-emption rights on allotment provide every shareholder in a company with a means to guard against dilution of their percentage stake where this could result from a share allotment, the issue of rights to subscribe for shares, the conversion of securities into shares, or a disposal of treasury shares by that company. This Practice Note addresses the pre-emption rights applicable to an allotment of equity securities by a public company that is neither a listed company nor an AIM company (that is, an unlisted public company), as prescribed in the Companies Act 2006 (CA 2006). Close attention should be paid to the breadth of those statutory pre-emption rights, because an unlisted public company must observe them to the extent that they have not been disapplied, varied, waived, or excluded and ensure that it complies with them to that extent...

This starter guide offers an overview of the Private Client practice area. It is designed for trainee solicitors, paralegals, and anyone new to Private Client work. It concentrates on core topics within Private Client law and signposts additional Lexis+® UK resources and materials that deliver more comprehensive detail. Newcomers to Private Client will also find the Overviews within each subtopic of the Private Client module helpful. These Overviews introduce each subtopic and link to pertinent content within it, aiding navigation of the area. For instance, see: Will drafting—overview and Inheritance tax (IHT)—overview. If something is not covered here, try browsing our Private Client topic tree or using the search bar to locate further Private Client content. The guide also includes links to help you get the most from the Private Client materials, including how to subscribe to email alerts and how to contact the LexisAsk team. Key topics in Private Client Private Client lawyers commonly handle: Wills Probate Trusts Powers of...

[ ON THE LETTERHEAD OF THE PLACING AGENT ] An application has been submitted for the entire issued and to-be-issued ordinary share capital of the Company to be admitted to trading on AIM. It is anticipated that Admission will take effect and dealings in the Ordinary Shares will begin on AIM on [ insert expected date of admission to AIM ]. [ insert name of Placing Agent ] accepts no liability whatsoever for the accuracy of any statements or opinions contained within the Admission Document (as defined below), for which [ insert name of Placing Agent ] bears no responsibility, nor for any omission of material information from the Admission Document. Recipients of this document should note that, in connection with the Placing (as defined below) and Admission, [ insert name of Placing Agent ] is acting solely for the Company and for no one else, and will not be responsible to any person other than the Company for providing the protections afforded to its clients or for advising...

SPECIAL RESOLUTION[S] 1 THAT, if [ insert reference to the resolution granting authority to allot ] is approved, the Board shall be empowered to issue equity securities (as defined in the Companies Act 2006) for cash under the authority conferred by that resolution and/or to dispose of ordinary shares held by the Company in treasury for cash, as though section 561 of the Companies Act 2006 did not apply to any such issue or sale, such power to be restricted as follows: [ insert wording to limit the authority to disapply pre-emption rights to allotments for rights issues and other pre-emptive issues ]; to the issue of equity securities or the disposal of treasury shares (other than pursuant to paragraph (A) above) up to an aggregate nominal amount of £[ insert amount, to be not more than 10 per cent of the issued ordinary share capital (excluding treasury shares) of the Company as at the latest practicable date prior to publication of the notice of...

ORDINARY RESOLUTION THAT [ subject to and contingent upon [ insert any conditions relating to the exercise of the authority to sub-divide shares ], ] [ [ insert number ] OR the whole of the ] [ insert class ] shares of [ insert nominal value ] each in the capital of the Company [ held by [ insert name ] ] [ , bearing numbers [ insert number ] to [ insert number ] inclusive, ] be split into [ insert number ] [ insert class ] shares of [ insert nominal value ] each [ , bearing numbers [ insert number ] to [ insert number ] inclusive ] , with the rights and restrictions attaching to those shares (save as to nominal value) remaining unaltered by such sub-division...