National Grid 2016 Annual Report Download - page 142

24. Share capital
Ordinary share capital represents the total number of shares issued which are publicly traded. We also disclose the number of treasury
shares the Company holds, which are shares that the Company has bought itself, predominantly to satisfy the scrip dividend programme
and employee share option plan liabilities.
Share capital is accounted for as an equity instrument. An equity instrument is any contract that includes a residual interest in the consolidated
assets of the Company after deducting all its liabilities and is recorded at the proceeds received, net of direct issue costs, with an amount equal
to the nominal amount of the shares issued included in the share capital account and the balance recorded in the share premium account.
Allotted, called up
andfully paid
million £m
At 1 April 2014 3,854 439
Issued during the year in lieu of dividends138 4
At 31 March 2015 3,892 443
Issued during the year in lieu of dividends132 4
At 31 March 2016 3,924 447
1. The issue of shares under the scrip dividend programme is considered to be a bonus issue under the terms of the Companies Act 2006 and the nominal value of the shares is charged
totheshare premium account.
The share capital of the Company consists of ordinary shares of 1117⁄43 pence nominal value each including ADSs. The ordinary shares and
ADSs allow holders to receive dividends and vote at general meetings of the Company. The Company holds treasury shares but may not
exercise any rights over these shares including the entitlement to vote or receive dividends. There are no restrictions on the transfer or sale
ofordinary shares.
In line with the provisions of the Companies Act 2006, the Company has amended its Articles of Association and ceased to have authorised
share capital.
Treasury shares
At 31 March 2016, the Company held 179m (2015: 153m) of its own shares. The market value of these shares as at 31 March 2016 was
£1,767m (2015: £1,323m).
The Company made the following transactions in respect of its own shares during the year ended 31 March 2016:
1. During the year, the Company, as part of management of the dilutive effect of share issuances under the scrip dividend programme,
repurchased 31m (2015: 37m) ordinary shares for aggregate consideration of £267m (2015: £338m), including transaction costs.
Thesharesrepurchased have a nominal value of £4m (2015: £4m) and represented approximately 1% (2015: 1%) of the ordinary
sharesinissue as at 31 March 2016.
2. During the year, 2m (2015: 3m) treasury shares were gifted to National Grid Employee Share Trusts and 3m (2015: 5m) treasury shares
werere-issued in relation to employee share schemes, in total representing approximately 0.1% (2015: 0.2%) of the ordinary shares in issue
as at 31 March 2016. The nominal value of these shares was £1m (2015: £1m) and the total proceeds received were £16m (2015: £23m).
3. During the year the Company made payments totalling £6m (2015: £7m) to National Grid Employee Share Trusts, outside of its share
repurchase programme, to enable the trustees to make purchases of National Grid plc shares in order to satisfy the requirements of
employee share option and reward plans.
The maximum number of shares held during the year was 179m ordinary shares (2015: 153m) representing approximately 4.6% (2015: 3.9%)
ofthe ordinary shares in issue as at 31 March 2016 and having a nominal value of £20m (2015: £17m).
Notes to the consolidated financial statements
– analysis of items in the primary statements continued
140 National Grid Annual Report and Accounts 2015/16 Financial Statements