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ANNUAL REPORT AND FINANCIAL STATEMENTS 2011 | 101


31. Share capital 31 December 2011 Ordinary Share capital of 0.1p


Allotted, called up and fully paid: Equity interests Ordinary Shares of 0.1p*


* Includes those categorised as own shares. 2011


No. of shares


Issued at 1 January Placing of new shares


Issued at Completion in respect of TRC Commutation arrangements Issue of shares at par to settle share-based payment awards†


Issued at 31 December †


532,118,789 – – –


532,118,789 2010


No. of shares


499,273,120 24,807,145 6,085,996 1,952,528


532,118,789


During 2010 Ordinary Shares were allotted at par value into an EBT to settle share-based payment awards. There was no exercise price associated with these awards.


The holders of Ordinary Shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.


The Group held the following Ordinary Shares in Employee Benefit Trusts (EBTs) or similar arrangements. These are categorised as own shares and are deducted from shareholders’ funds:


31 December 2011 No.


F&C Management Limited Employee Benefit Trust The Ivory & Sime Employee Benefit Trust


Thames River Capital (UK) Limited Family Benefit Plan Held by RBC cees in a nominee capacity#


# These are specifically held as TRC Deferred Commutation Shares in respect of Commutation arrangements.


The aggregate nominal value of own shares held by EBTs at 31 December 2011 was £14,000 (31 December 2010: £21,000). The market value of these shares at 31 December 2011 was £9.1m (31 December 2010: £17.8m).


During the year, the Group purchased 4,125,841 of its own 0.1p Ordinary Shares (2010: 14,988,822) to satisfy the settlements of awards granted under share schemes and to hold as own shares within an EBT. The consideration paid for the shares was £3.2m (2010: £9.7m).


32. Reserves The analysis of movements in reserves is disclosed within the Consolidated Statement of Changes in Equity on page 45.


Nature and purpose of reserves:


Share premium account The share premium account is used to record the issue of share capital in excess of par value.


Capital redemption reserve The Capital redemption reserve is used to maintain the capital of the Company when shares are bought back and subsequently cancelled without Court Approval.


Merger reserve The merger reserve is used to record share premium on shares issued by way of consideration in respect of acquisitions. The element of the merger reserve which relates to amortisation and impairment of intangible assets charged to the Income Statement is considered to be realised.


A transfer is made from the merger reserve to retained earnings to recognise the extent to which the merger reserve has been realised, thereby offsetting the corresponding element of the intangible amortisation and any impairment charge.


10,437,516 64,176


1,185,960 2,253,335


13,940,987


31 December 2010 No.


17,778,910 64,176


1,139,460 2,195,059


21,177,605


No. of shares


532,118,789 £m 0.5 31 December 2010


No. of shares


532,118,789 £m 0.5


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