Share premium meaning

STOP PRESS: A major overhaul of the UK listing framework took effect on 29 July 2024, removing the premium and standard segments and introducing a single listing category for equity shares in commercial companies. The commercial companies category is strongly disclosure-led, with an emphasis on transparency, and sits alongside other listing categories, such as shell companies, secondary listing and closed-ended investment fund categories. A new UK Listing Rules sourcebook came into force to deliver and implement the reforms, and the previous Listing Rules sourcebook was revoked in full. For further details, see Practice Note: Reform of the UK listing regime—fundamentals. This Checklist reflects the regime as it stood before 29 July 2024. The allotment and issue of shares are governed by statutory rules, which vary according to the type of company proposing the allotment (private or public, listed or unlisted) and whether that company has a single class or multiple classes of shares. This checklist sets out the procedure for a listed company to allot shares and to...

STOP PRESS: A major, wide-ranging overhaul of the UK listing framework took effect on 29 July 2024, abolishing the premium and standard listing segments and introducing a unified category for equity shares of commercial companies. That commercial companies category is strongly disclosure-led and sits alongside other listing categories, including the shell companies, secondary listing and closed ended investment fund categories. A new UK Listing Rules sourcebook commenced to deliver these reforms, and the previous Listing Rules sourcebook was withdrawn at the same time. For more detail, see Practice Note: Reform of the UK listing regime—fundamentals for guidance. This Checklist represents the listing regime as it existed before 29 July 2024. A limited company may acquire its own shares if certain conditions set out in the Companies Act 2006 (CA 2006) are satisfied under that statute. This is commonly referred to as a share buyback or a purchase of own shares. In addition to the provisions of the CA 2006, further rules and guidelines are relevant to a listed company...

STOP PRESS: A major overhaul of the UK listing framework took effect on 29 July 2024, removing the premium and standard listing segments and introducing a single listing category for equity shares issued by commercial companies. The commercial companies category is strongly disclosure-led and sits alongside other listing categories, namely shell companies, the secondary listing and closed ended investment fund categories. To implement the reforms, a new UK Listing Rules sourcebook came into force, and the former Listing Rules sourcebook was withdrawn. For further details and background, see Practice Note: Reform of the UK listing regime—fundamentals. This Flowchart sets out the listing regime as it applied before 29 July 2024, for ease of reference. You can view or print a full sized PDF version...

In this issue: Corporate governance HMRC Manuals tracker Useful information Weekly highlights from other practice areas Corporate governance Ocado shareholders approve new remuneration policy At Ocado Group PLC’s AGM this week, investors backed a new directors’ remuneration policy (DRP), with 80.57% of votes cast in favour. The policy brings in a performance-linked long-term incentive scheme featuring annual rolling awards and a three-year measurement period, delivering a ‘base’ opportunity of 400% of salary for the CEO and 350% for the CFO where stretching goals are achieved. Those potential maxima are subject to a further multiplier of up to 1.5 times—taking them to 600% and 525% respectively—tied to Ocado’s relative TSR against the FTSE 100. For 2024, the CEO, Tim Steiner, will also see upside elements from the company’s contentious value creation plan folded into his grant (the plan itself will not run in 2024), including a heightened multiplier of 4.5 times the base award where exceptional share price performance is...

Listed on the London Stock Exchange (LSE), Carillion was a prominent international construction, project finance and support services company with operations in the UK, Canada and the Middle East. Background On 10 July 2017, Carillion disclosed, among other matters, an anticipated provision of £845 million, of which £375 million related to projects within Carillion Construction Services (provision here meaning, in accounting terms, an amount reserved from profits to meet a likely future liability or loss of uncertain timing or amount). This in effect eliminated Carillion’s profits for the preceding six years. Based on earlier statements by Carillion Construction Services, the market had not foreseen such a provision at all in advance. The share price dropped 39% on the day of the announcement and 70% within three days. Given the apparently misleading communications to the market, the FCA commenced enforcement action...

Alexander Beard v HMRC [2024] UKUT 73 (TCC) The taxpayer, Mr Beard, held shares in Glencore plc, a company incorporated in Jersey and domiciled in Switzerland. Between the tax years 2011–12 and 2015–16 he received cash distributions taken from the company’s share premium account, together with an in specie distribution in 2015 (the Distributions). HMRC issued a closure notice treating the Distributions as chargeable to income tax. Mr Beard appealed, contending that, because they were funded from the share premium account, the Distributions were dividends of a capital nature. This mattered because ITTOIA 2005, s 402 states that dividends from a non-UK resident company are subject to income tax, save for ‘dividends of a capital nature’. On that footing, Mr Beard maintained that the Distributions fell outside the income tax charge and were instead within the scope of capital gains tax...

STOP PRESS: A major overhaul of the UK listings regime took effect on 29 July 2024, scrapping both the premium and the standard listing segments and replacing them with a single category for equity shares in commercial companies. That commercial companies category is heavily disclosure-led and sits alongside other listing categories, including the shell companies category, the secondary listing category and the closed ended investment fund category, among others. A new UK Listing Rules sourcebook came into force to deliver these changes, and the previous Listing Rules sourcebook was revoked. For further information and detail, see Practice Note: Reform of the UK listing regime—fundamentals. This Practice Note reflects the regime as it existed prior to 29 July 2024. A limited company may buy back shares in itself, provided conditions set out in the Companies Act 2006 (CA 2006) are satisfied, where applicable. This is known as a share buyback or a purchase of own shares. In addition to CA 2006, there are other rules and guidelines that are relevant...

ARCHIVED: This archived guidance, dated September 2009, was issued by The Chartered Governance Institute (CGI). It outlines practical methods by which a company might comply with the requirement to present, in a statement of capital, the amount paid up and the amount (if any) left unpaid on each of its shares (whether relating to the share’s nominal value or arising as premium) that applied under the Companies Act 2006 (CA 2006) before 30 June 2016. It is not maintained at present and remains archived...

Last updated 23 March 2026. This tracker reviews commercial companies joining the London Stock Exchange’s Main Market with a dual or multiple class share structure (DCSS), where one share class carries weighted voting rights, and summarises the rights attached to those shares. A DCSS lets a founder shareholder keep voting control by giving enhanced or weighted rights to an unlisted share class or a special ‘golden share’. Listed companies with a dual or multiple class share structure The summary below outlines commercial companies that have listed on the London Stock Exchange’s Main Market with a dual or multiple class share set-up as set out below. Entries cover: the company; dates of key events; share structure and the holders of any weighted voting rights share(s) on admission; and a synopsis of the rights of weighted voting rights shares or any special share on admission. Oxford Nanopore Technologies plc 5 October 2021 — admitted to the standard listing segment 29 July 2024...

Insert the following as new definitions (if not already included) in the articles of association of the relevant company: A Ordinary Shares — refers to the A ordinary shares of [ insert amount ] each comprised within the share capital of the Company; Available Profits — signifies profits that are distributable as construed under the Companies Act; B Ordinary Shares — denotes the B ordinary shares of [ insert amount ] apiece forming part of the Company’s capital; Issue Price — indicates the price at which the relevant Share is allotted, being the combined total of amounts paid or treated as paid in respect of its nominal value together with any share premium applicable; Preference Dividend — means the dividend payable in accordance with Article [ insert number of article dealing with company dividend payments ]; Preference ...

STOP PRESS: A major overhaul of the UK listing framework took effect on 29 July 2024, abolishing the premium and the standard listing segments and introducing a single listing category for equity shares issued by commercial companies. This commercial companies category is strongly disclosure-led and now sits alongside other listing categories that include shell companies, the secondary listing and the closed ended investment fund categories. To deliver these reforms, a new UK Listing Rules sourcebook entered into force and the earlier Listing Rules sourcebook was revoked. For more detailed information, see Practice Note: Reform of the UK listing regime—fundamentals. This Precedent describes the position under the listing regime as it stood before 29 July 2024...

We are now at a point in your matter where, in our view, it is in your best interests to purchase [ insert type of insurance ]. We recommend arranging this cover through [ state name of insurance provider to whom you have introduced the client for insurance or who has given you delegated authority to issue a policy ]. We have already spoken about this and you have confirmed that we will [ state what you will do to arrange the insurance, eg complete and submit a proposal form on your behalf or issue the policy under delegated authority ]. You have also authorised us to share the relevant personal data and information with [ state name of insurance provider ] for this purpose... Fees, charges and commission Insurance premium The [ insert type of insurance ] insurance policy is priced at £[ insert amount or where it is not possible to give a specific amount, the basis for the calculation of the premium ]. This...