BP 2010 Annual Report Download - page 111

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Corporategovernance
Corporate governance
Voting rights
TheArticlesofAssociationofthecompanyprovidethatvotingon
resolutionsatashareholders’meetingwillbedecidedonapollotherthan
resolutionsofaproceduralnature,whichmaybedecidedonashowof
hands.Ifvotingisonapoll,everyshareholderwhoispresentinpersonor
byproxyhasonevoteforeveryordinaryshareheldandtwovotesforevery
£5innominalamountofBPpreferencesharesheld.Ifvotingisonashow
ofhands,eachshareholderwhoispresentatthemeetinginpersonor
whosedulyappointedproxyispresentinpersonwillhaveonevote,
regardlessofthenumberofsharesheld,unlessapollisrequested.
Shareholdersdonothavecumulativevotingrights.
Holdersofrecordofordinarysharesmayappointaproxy,including
abenecialownerofthoseshares,toattend,speakandvoteontheir
behalfatanyshareholders’meeting.
RecordholdersofBPADSsarealsoentitledtoattend,speakand
voteatanyshareholders’meetingofBPbytheappointmentbythe
approveddepositary,JPMorganChaseBank,ofthemasproxiesin
respectoftheordinarysharesrepresentedbytheirADSs.Eachsuch
proxymayalsoappointaproxy.Alternatively,holdersofBPADSsare
entitledtovotebysupplyingtheirvotinginstructionstothedepositary,
whowillvotetheordinarysharesrepresentedbytheirADSsinaccordance
withtheirinstructions.
Proxiesmaybedeliveredelectronically.
Mattersaretransactedatshareholders’meetingsbytheproposing
andpassingofresolutions,ofwhichtherearetwotypes:ordinaryor
special.Anannualgeneralmeetingmustbeheldonceineveryyear.
Anordinaryresolutionrequirestheafrmativevoteofamajorityof
thevotesofthosepersonsvotingatameetingatwhichthereisaquorum.
Aspecialresolutionrequirestheafrmativevoteofnotlessthanthree-
fourthsofthepersonsvotingatameetingatwhichthereisaquorum.
AnyAGMrequires21days’notice.Thenoticeperiodforageneralmeeting
is14dayssubjecttothecompanyobtainingannualshareholderapproval,
failingwhich,a21-daynoticeperiodwillapply.
Liquidation rights; redemption provisions
IntheeventofaliquidationofBP,afterpaymentofallliabilitiesand
applicabledeductionsunderUKlawsandsubjecttothepaymentof
securedcreditors,theholdersofBPpreferenceshareswouldbeentitled
tothesumof(i)thecapitalpaiduponsuchsharesplus,(ii)accruedand
unpaiddividendsand(iii)apremiumequaltothehigherof(a)10%ofthe
capitalpaidupontheBPpreferencesharesand(b)theexcessofthe
averagemarketpriceoverparvalueofsuchsharesontheLSEduringthe
previoussixmonths.Theremainingassets(ifany)wouldbedividedprorata
amongtheholdersofordinaryshares.
Withoutprejudicetoanyspecialrightspreviouslyconferredonthe
holdersofanyclassofshares,BPmayissueanysharewithsuchpreferred,
deferredorotherspecialrights,orsubjecttosuchrestrictionsasthe
shareholdersbyresolutiondetermine(or,intheabsenceofanysuch
resolutions,bydeterminationofthedirectors),andmayissuesharesthat
aretobeormayberedeemed.
Variation of rights
Therightsattachedtoanyclassofsharesmaybevariedwiththeconsent
inwritingofholdersof75%ofthesharesofthatclassorontheadoption
ofaspecialresolutionpassedataseparatemeetingoftheholdersofthe
sharesofthatclass.Ateverysuchseparatemeeting,alloftheprovisions
oftheArticlesofAssociationrelatingtoproceedingsatageneralmeeting
apply,exceptthatthequorumwithrespecttoameetingtochangethe
rightsattachedtothepreferencesharesis10%ormoreofthesharesof
thatclass,andthequorumtochangetherightsattachedtotheordinary
sharesisone-thirdormoreofthesharesofthatclass.
Shareholders’ meetings and notices
ShareholdersmustprovideBPwithapostalorelectronicaddressintheUK
tobeentitledtoreceivenoticeofshareholders’meetings.Incertain
circumstances,BPmaygivenoticestoshareholdersbyadvertisementin
UKnewspapers.HoldersofBPADSsareentitledtoreceivenoticesunder
thetermsofthedepositagreementrelatingtoBPADSs.Thesubstance
andtimingofnoticesisdescribedaboveundertheheadingVotingrights.
UndertheArticlesofAssociation,theAGMofshareholderswillbe
heldwithinthesix-monthperiodonceeveryyear.Allgeneralmeetingsshall
beheldatatimeandplacedeterminedbythedirectorswithintheUK.If
anyshareholders’meetingisadjournedforlackofquorum,noticeofthe
timeandplaceofthemeetingmaybegiveninanylawfulmanner,including
electronically.Powersexistforactiontobetakeneitherbeforeoratthe
meetingbyauthorizedofcerstoensureitsorderlyconductandsafetyof
thoseattending.
Limitations on voting and shareholding
TherearenolimitationsimposedbyEnglishlaworthecompany’s
MemorandumorArticlesofAssociationontherightofnon-residentsor
foreignpersonstoholdorvotethecompany’sordinarysharesorBPADSs,
otherthanlimitationsthatwouldgenerallyapplytoalloftheshareholders.
Disclosure of interests in shares
TheActpermitsapubliccompany,onwrittennotice,torequireanyperson
whomthecompanybelievestobeor,atanytimeduringthethreeyears
priortotheissueofthenotice,tohavebeeninterestedinitsvotingshares,
todisclosecertaininformationwithrespecttothoseinterests.Failureto
supplytheinformationrequiredmayleadtodisenfranchisementofthe
relevantsharesandaprohibitionontheirtransferandreceiptofdividends
andotherpaymentsinrespectofthoseshares.Inthiscontexttheterm
‘interest’iswidelydenedandwillgenerallyincludeaninterestofanykind
whatsoeverinvotingshares,includinganyinterestofaholderofBPADSs.
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