National Grid 2014 Annual Report Download - page 176

Share capital
The share capital of the Company consists of ordinary shares of
1117⁄43 pence nominal value each and ADSs, which represent five
ordinary shares.
Authority to purchase shares
Shareholder approval was given at the 2013 AGM to purchase
upto 10% of the Company’s share capital. The Directors intend
toseek shareholder approval to renew this authority at this
year’sAGM.
In some circumstances, the Company may find it advantageous
tohave the authority to purchase its own shares in the market.
TheDirectors believe that it is an important part of the financial
management of the Company to have the flexibility to repurchase
issued shares in order to manage its capital base.
The Company will only purchase shares where the Directors
believe this would be in the best interests of shareholders
generally, for example to manage the excess share dilution created
by a large take-up through the scrip dividend scheme. The
authority will only be used after careful consideration, taking into
account market conditions prevailing at the time, other investment
opportunities, appropriate gearing levels and the overall financial
position of the Company.
Share issuance arising from the operation of the scrip dividend
scheme may be actively managed through the repurchase of the
Company’s shares. It is expected that such repurchases will not
exceed 1% of the issued share capital (excluding treasury shares)
per annum. For further details in relation to the management of the
scrip dividend scheme, see page 02.
Repurchased shares may be held as treasury shares by the
Company, and resold for cash, cancelled, either immediately or
atsome point in the future, or used for the purposes of employee
share schemes.
No shares were repurchased during the year. Of the shares
repurchased in prior years and held as treasury shares, 7,578,281
have been transferred to employees under the employee share
plans, leaving a balance as at the date of this report of
119,565,599 ordinary shares held as treasury shares.
Material interests in shares
As at 31 March 2014, National Grid had been notified of the
following holdings in voting rights of 3% or more in the issued
share capital of the Company:
Number of
ordinary shares
% of voting
rights1
The Capital Group Companies, Inc. 414,173,676 11.103
Black Rock, Inc. 182,630,798 5.21
Crescent Holding GmbH 149,414,285 4.07
1. This number is calculated in relation to the issued share capital at the time the holding
wasdisclosed.
As at 18 May 2014, no further notifications have been received.
The rights attached to ordinary shares are detailed on page 175.
All ordinary shares carry the same voting rights.
Political donations and expenditure
National Grid made no donations in the UK or EU during the year,
including donations as defined for the purposes of the Political
Parties, Elections and Referendums Act 2000. National Grid USA
and its affiliated New York and federal political action committees
(each, a PAC) made political donations in the US totalling $100,325
(£61,929) during the year. National Grid USA’s affiliated New York
PAC was funded partly by contributions from National Grid USA
and certain of its subsidiaries and partly by voluntary employee
contributions. National Grid USA’s affiliated federal PAC was
funded wholly by voluntary employee contributions.
Research and development
Expenditure on research and development during the year was
£12 million (2012/13: £15 million; 2011/12: £15 million). RIIO has
strengthened the incentives and provided additional innovation
funding support to stimulate innovation so that we deliver
increased benefits for our stakeholders.
During 2013/14, collaboration has been a key focus for a number
of National Grid’s innovation projects in all three of our UK
Regulated business areas: UK ET, UK GT and UK GD. Innovation
in UK ET has focused on technologies and approaches for
enhancing the capacity and the reliability of the electricity
transmission network. UK GT has focused innovation on safety
and alternative material while incorporating commercial, operation
and process-led innovation to complement the preceding focus
on asset management. Innovation in UK GD has centred around
life extension and emission reduction, looking to robotic
technologies that can remediate our assets while having the
minimum of impact on our customers through street works. Focus
has also been on understanding the potential of alternative fuel
sources to support alow carbon economy.
Directors’ Report
disclosures
continued
174 National Grid Annual Report and Accounts 2013/14