Aviva 2007 Annual Report Download - page 181
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Please find page 181 of the 2007 Aviva annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.31 – Preference share capital
This note gives details of Aviva plc’s preference share capital.
The preference share capital of the Company at 31 December 2007 was:
2007 2006
£m £m
Authorised
200,000,000 cumulative irredeemable preference shares of £1 each 200 200
1,000,000,000 Sterling preference shares of £1 each 1,000 1,000
1,200 1,200
2007 2006
5m1m
700,000,000 Euro preference shares of 11 each 700 700
2007 2006
£m £m
Issued and paid up
100,000,000 83⁄8% cumulative irredeemable preference shares of £1 each 100 100
100,000,000 83⁄4% cumulative irredeemable preference shares of £1 each 100 100
200 200
The Sterling preference shares, if issued and allotted, would rank, as to payment of a dividend and capital, ahead of the
Company’s ordinary share capital but behind the cumulative irredeemable preference shares currently in issue. The issued
preference shares are non-voting except where their dividends are in arrears, on a winding up or where their rights are
altered. On a winding up, they carry a preferential right of return of capital ahead of the ordinary shares. The Company
does not have a contractual obligation to deliver cash or other financial assets to the preference shareholders and
therefore the directors may make dividend payments at their discretion.
32 – Direct capital instrument
This note gives details of the direct capital instrument issued in November 2004.
2007 2006
Notional amount £m £m
5.9021% £500 million direct capital instrument 500 500
4.7291% 1700 million direct capital instrument 490 490
990 990
The euro and sterling direct capital instruments (the DCIs) were issued on 25 November 2004. They have no fixed
redemption date but the Company may, at its sole option, redeem all (but not part) of the euro and sterling DCIs at
their principal amounts on 28 November 2014 and 27 July 2020 respectively, at which dates the interest rates change
to variable rates, or on any respective coupon payment date thereafter.
In addition, under certain circumstances defined in the terms and conditions of the issue, the Company may at its
sole option:
(i) substitute at any time all (but not some only) of the DCIs for, or vary the terms of the DCIs so that they become,
Qualifying Tier 1 Securities or Qualifying Upper Tier 2 Securities;
(ii) substitute all (but not some only) of the DCIs for fully paid non-cumulative preference shares in the Company.
These preference shares could only be redeemed on 28 November 2014 in the case of the euro DCIs and on 27 July 2020
in the case of the sterling DCIs, or in each case on any dividend payment date thereafter. The Company has the right to
choose whether or not to pay any dividend on the new shares, and any such dividend payment will be non-cumulative.
The Company has the option to defer coupon payments on the DCIs on any relevant payment date. Deferred coupons
shall be satisfied only in the following circumstances, all of which occur at the sole option of the Company:
(i) Redemption; or
(ii) Substitution by, or variation so they become, alternative Qualifying Tier 1 Securities or Qualifying Upper Tier 2 Securities;
or
(iii) Substitution by preference shares.
No interest will accrue on any deferred coupon. Deferred coupons will be satisfied by the issue and sale of ordinary shares
in the Company at their prevailing market value, to a sum as near as practicable to (and at least equal to) the relevant
deferred coupons. In the event of any coupon deferral, the Company will not declare or pay any dividend on its ordinary
or preference share capital.
Aviva plc
Annual Report and
Accounts 2007
177
Financial
statements