COMPANY NUMBER 2983307
THE COMPANIES ACT 1985 AND 1989
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PUBLIC COMPANY LIMITED BY SHARES
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ARTICLES OF ASSOCIATION
OF
TELEWEST COMMUNICATIONS PLC(1)
(Effective as of 7 July 2000)
PRELIMINARY
INTERPRETATION
1.1 In the articles:
ACT means, unless the context otherwise requires, the Companies Act 1985,
including any statutory modification or re-enactment for the time being in
force;
ACTS means the Companies Acts 1985 and 1989 and all statutes and subordinate
legislation for the time being in force concerning companies so far as they
apply to the Company;
APPROVED DEPOSITARY means a custodian or other person (or a nominee for such
custodian or other person) appointed under contractual arrangements with the
Company or other arrangements approved by the board whereby such custodian or
other person or nominee holds or is interested in shares of the Company or
rights or interests in shares of the Company and issues securities or other
documents of title or otherwise evidencing the entitlement of the holder thereof
to or to receive such shares, rights or interests, provided and to the extent
that such arrangements have been approved by the board for the purposes of the
articles and shall include, where approved by the board, the trustees (acting in
their capacity as such) of any employees' share scheme established by the
Company or any other scheme or arrangements principally for the benefit of
employees of the Company and/or its subsidiaries which have been approved by the
Company in general meeting;
ARTICLES means these articles of association as amended from time to time;
AUDITORS means the auditors of the Company;
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1 The Company was incorporated as a public company limited by shares with the
name Amberfrost plc on 20 January 1994. Its name was changed to TeleWest
plc on 7 June 1995 pursuant to a special resolution passed on 7 June 1995,
and to Telewest Communications plc on 16 May 1996 pursuant to a special
resolution passed on 16 May 1996.
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BOARD means the board of directors of the Company or the directors present or
deemed to be present at a duly convened meeting of the directors at which a
quorum is present;
BUSINESS DAY means a day (not being a Saturday or Sunday) on which clearing
banks are open for business in London;
CLEAR DAYS means, in relation to a period of notice, that period excluding the
day when the notice is given or deemed to be given and the day for which it is
given or on which it is to take effect;
COMPANY includes any body corporate (not being a corporation sole) or
association of persons, whether or not a company within the meaning of the Act;
DILUTIVE ISSUE means any issue of Shares or other securities (including
securities convertible into or exchangeable for Shares or other securities
carrying the right to vote at general meetings of the Company's Shareholders) in
the capital of the Company in respect of which the Liberty Group or the
Microsoft Group (as relevant) was not entitled by the terms of such issue to
participate on a pro-rata basis;
DIRECTOR means, unless the context otherwise requires, a director of the
Company;
DIVIDEND includes bonus;
ENTITLED BY TRANSMISSION means, in relation to a share, entitled as a
consequence of the death or bankruptcy of a member or of another event giving
rise to a transmission of entitlement by operation of law;
EXECUTED includes, in relation to a document, execution under hand or under seal
or by another method permitted by law;
HOLDER means, in relation to a share, the member whose name is entered in the
register as the holder of that share;
INDEPENDENT DIRECTOR means any director who is not designated by the Microsoft
Group or the Liberty Group in accordance with article 72 and is not a partner,
officer, employee of, or an individual having a material consultancy with, the
Liberty Group or the Microsoft Group;
LESSER QUALIFYING INTEREST means:
(a) 7.5% or more of the ordinary shares in issue for the time being; or
(b) following any Dilutive Issue, 5% or more of the ordinary shares in issue
for the time being provided immediately prior to such Dilutive Issue the
Liberty Group or the Microsoft Group (as relevant) held 7.5% or more of the
ordinary shares in issue for the time being;
For the foregoing purposes the percentage of ordinary shares held shall be
calculated on the assumption that all ordinary shares issued after 15 April 1998
pursuant to or for the purposes of employee share options shall be ignored;
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LIBERTY means Liberty Media International, Inc., a corporation incorporated
under the laws of the State of Delaware, USA;
LIBERTY DESIGNATED DIRECTOR means any director who may be appointed from time to
time by a member of the Liberty Group pursuant to article 72.1 provided that a
Liberty Designated Director shall automatically cease so to be in the following
circumstances:
(a) upon members of the Liberty Group ceasing to hold a Qualifying Interest and
the right to appoint two directors pursuant to article 72, but retaining a
Lesser Qualifying Interest and the right to appoint one director, the
Liberty Designated Director last appointed to the board shall cease so to
be;
(b) upon members of the Liberty Group ceasing to hold a Qualifying Interest or
a Lesser Qualifying Interest and to have the right to appoint a director or
two directors pursuant to article 72, all Liberty Designated Directors
shall cease so to be;
LIBERTY GROUP means at any time TCI and/or Liberty Media Corporation and/or
Liberty and/or either of their holding companies, and/or either of their
subsidiary undertakings and/or any subsidiary undertakings of either of their
holding companies for the time being, and a MEMBER OF THE LIBERTY GROUP shall
mean any registered holder of shares beneficially owned by a person within such
group, provided always that (save in respect of TW Holdings) no person or group
of undertakings within the Liberty Group shall also be within the Microsoft
Group. TW Holdings shall be deemed to be a member of the Liberty Group but only
to the extent of the number of Pro Rata Shares of Liberty Group. Wherever the
articles require or permit the calculation of a number or percentage of ordinary
shares held by the Liberty Group such number or percentage shall include the Pro
Rata Shares of the Liberty Group;
LIMITED VOTING SHARES mean the limited voting convertible ordinary shares having
the rights set out in article 3A;
LONDON STOCK EXCHANGE means the International Stock Exchange of the United
Kingdom and the Republic of Ireland Limited;
MICROSOFT means Microsoft Corporation, a corporation incorporated under the laws
of Washington;
MICROSOFT DESIGNATED DIRECTOR means any director who may be appointed from time
to time by a member of the Microsoft Group pursuant to article 71.2 provided
that a Microsoft Designated Director shall automatically cease so to be in the
following circumstances:
(a) upon members of the Microsoft Group ceasing to hold a Qualifying Interest
and to have the right to appoint two directors pursuant to article 71, but
retaining a Lesser Qualifying Interest and the right to appoint one
director, the Microsoft Designated Director last appointed to the board
shall cease so to be; and
(b) upon members of the Microsoft Group ceasing to hold a Qualifying Interest
or a Lesser Qualifying Interest and to have the right to appoint a director
or two
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directors pursuant to article 71, all Microsoft Designated Directors shall
cease so to be;
MICROSOFT GROUP means at any time Microsoft and any holding company of
Microsoft, and its subsidiary undertakings and any subsidiary undertaking of any
such holding company for the time being, and a MEMBER OF THE MICROSOFT GROUP
shall mean any registered holder of shares beneficially owned by a person within
such group, provided always that (save in respect of TW Holdings) no person or
group of undertakings within the Microsoft Group shall also be within the
Liberty Group. TW Holdings shall be deemed to be a member of the Microsoft Group
but only to the extent of the number of Pro Rata Shares of the Microsoft Group.
Wherever the articles require or permit the calculation of a number or
percentage of ordinary shares held by the Microsoft Group such number or
percentage shall include the Pro Rata Shares of the Microsoft Group;
MEMBER means, unless the context otherwise requires, a member of the Company;
OFFICE means the registered office of the Company;
ORDINARY SHARES means ordinary shares in the capital of the Company (excluding,
for the avoidance of doubt, the limited voting shares);
PAID, PAID UP and PAID-UP include credited as paid or paid up;
PRO RATA SHARES means, with respect to any Shareholder Group at any time, the
number of ordinary shares held by TW Holdings attributable to such Shareholder
Group being the product rounded to the nearest whole number of (x) the sum of
the number of ordinary shares held by TW Holdings multiplied by (y) the
aggregate percentage ownership interest in TW Holdings, expressed as a decimal,
held by members of such Shareholder Group as of such date;
QUALIFYING INTEREST means:
(a) 15% or more of the ordinary shares in issue for the time being; or
(b) following any Dilutive Issue, 12.5% or more of the ordinary shares in issue
for the time being provided that immediately prior to such Dilutive Issue
the Liberty Group or the Microsoft Group (as relevant) held 15% or more of
the ordinary shares in issue for the time being;
For the foregoing purposes the percentage of ordinary shares held shall be
calculated on the assumption that all ordinary shares issued after 15 April 1998
pursuant to or for the purposes of employee share options shall be ignored;
RECOGNISED PERSON means a recognised clearing house or a nominee of a recognised
clearing house or of a recognised investment exchange which is designated for
the purposes of section 185(4) of the Act;
REGISTER means, unless the context otherwise requires, the register of members
kept pursuant to section 352 of the Act;
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SEAL means, unless the context otherwise requires, the common seal of the
Company or any official or securities seal that the Company may have or may be
permitted to have under the Acts;
SECRETARY means the secretary of the Company and includes any assistant or
deputy secretary and a person appointed by the board to perform the duties of
the secretary;
SHAREHOLDER GROUP means any of the Liberty Group or the Microsoft Group;
SHARES means ordinary shares and limited voting shares;
TCI means Tele-Communications, Inc., a corporation incorporated under the laws
of the State of Delaware, USA;
TW HOLDINGS means TW Holdings, L.L.C., a Colorado limited liability company.
1.2 Words and expressions contained in the articles which are not defined in
article 1.1 have, unless the contrary is indicated, the same meaning as in the
Act, but excluding any statutory modification to the Act not in force at the
date of adoption of the articles.
1.3 Where an ordinary resolution of the Company is expressed to be required for
any purpose, a special or extraordinary resolution is also effective for that
purpose, and where an extraordinary resolution is expressed to be required for
any purpose, a special resolution is also effective for that purpose.
1.4 The headings in the articles do not affect the interpretation of the
articles.
TABLE A NOT TO APPLY
2. No regulations contained in any statute or subordinate legislation, including
the regulations contained in Table A in the schedule to the Companies (Tables A
to F) Regulations 1985 (as amended), apply as the regulations or articles of
association of the Company.
AUTHORISED CAPITAL
SHARE CAPITAL
3. The authorised share capital of the Company at the date of adoption of the
articles is (pound) o divided into o ordinary shares of 10p each and 300,000,000
limited voting convertible ordinary shares of 10p each. The special rights and
restrictions attaching to the limited voting convertible ordinary shares are set
out in Article 3A.
LIMITED VOTING SHARES
3.A For the purposes of this article 3A:
3.1A CONVERSION NOTICE means the written notice to convert served by the Company
under article 3.3A or by a holder of limited voting convertible ordinary shares
under article 3.4A;
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CONVERSION RATE means at the rate of one ordinary share for every one limited
voting convertible ordinary share; and
CONVERSION DATE means the date on which a conversion notice is received by the
registrars for the time being of the Company (the REGISTRARS) together with, in
the case of such a notice served by a holder of limited voting convertible
ordinary shares, those items referred to in article 3.4A; and
DEBENTURE CHANGE OF CONTROL means a Change of Control as defined in any of (i)
the Indenture, dated as of October 3, 1995, between the Company and The Bank of
New York, pursuant to which the Company issued its Senior Debentures due 2006,
(ii) the Indenture, dated as of October 3, 1995, between the Company and The
Bank of New York pursuant to which the Company issued its Senior Discount
Debentures due 2007, (iii) the Indenture dated as of November 9, 1998 between
the Company and The Bank of New York, pursuant to which the Company issued its
Senior Notes due 2008, (iv) the Indenture dated as of February 19, 1999, between
the Company and The Bank of New York pursuant to which the Company issued its
Senior Convertible Notes due 2007, (v) the Indenture dated as of 15 April, 1999,
between the Company and The Bank of New York, pursuant to which the Company
issued its Sterling and Dollar Senior Discount Notes due 2009, in each case as
in effect at 1 October 1999, and (vi) a document governing any other
indebtedness of the Company as agreed in writing in advance by Microsoft and
Liberty (the INDENTURES), provided that there shall not be deemed to be any such
Change of Control if all of the notes which have been issued pursuant to the
Indentures referred to in (i) to (v) prior to 30 September 1999 or pursuant to
any document referred to in (vi), have been redeemed, repaid, cancelled or
purchased by the Company.
3.2A The ordinary shares and the limited voting shares shall rank pari passu in
all respects save that the limited voting shares shall not confer the right to
speak or vote on any resolution for the removal, election, appointment or
re-appointment of directors and so that save as aforesaid the limited voting
shares shall at all times carry the same rights as and be treated as forming one
uniform class with the ordinary shares (provided that such shares shall be
treated as a separate class in relation to any variation of the rights attached
thereto).
3.3A The Company may at any time, upon approval by the board by written notice
to all or any of the holders of the limited voting shares convert such holder's
or holders' limited voting shares (on a pro-rata basis) into ordinary shares at
the conversion rate and, notwithstanding any other provisions of the articles,
no Microsoft Designated Director (while a member of the Microsoft Group holds or
is interested in limited voting shares) and no Liberty Designated Director
(while a member of the Liberty Group holds or is interested in limited voting
shares) shall be entitled to vote on any resolution of the board relating to
such approval.
3.4A No limited voting shares shall be converted into ordinary shares if such a
conversion would result in a debenture change of control. A holder of limited
voting shares shall be entitled upon approval by the board to convert all or any
of its limited voting shares into fully paid ordinary shares at the conversion
rate only if the conditions set out below are satisfied. The holder shall
complete a notice of conversion in such form as may from time to time be
prescribed by the directors and reasonably acceptable to the holder (which
notice may require representations by the holder as to its beneficial
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ownership of ordinary shares and the absence of other arrangements or conditions
that might cause such conversion to result in a debenture change of control).
Further, the holder shall deliver the same to the Company and the registrars
together with (i) such other evidence, if any, as the directors may reasonably
require to prove the title of the person exercising such right, and (ii) an
opinion reasonably satisfactory to the directors from leading external New York
counsel of at least 10 years standing addressed to the Company (at the expense
of the Company) stating that such conversion will not result in a debenture
change of control. A conversion notice, once given, may not be withdrawn without
the consent in writing of the Company. The directors shall approve the
conversion of the relevant limited voting shares unless the opinion referred to
in (ii) above is not reasonably satisfactory to them in which case they shall
notify the holder setting out the reasons for the determination. In connection
with any approval under this article 3.4A no Microsoft Designated Director
(while a member of the Microsoft Group holds or is interested in limited voting
shares) or Liberty Designated Director (while a member of the Liberty Group
holds or is interested in limited voting shares) shall be entitled to vote on
any resolution of the board relating to such conversion.
3.5A The ordinary shares arising on conversion in accordance with this article
3A shall be credited as fully paid and rank pari passu in all respects with the
ordinary shares then in issue and shall entitle the holder to all dividends and
other distributions payable on the ordinary shares after the conversion date.
Any dividend due but not paid on the relevant conversion date shall instead be
payable to the holder of the relevant limited voting share so converted.
3.6A Within 14 days after the relevant conversion date, the Company shall
forward to each holder, free of charge, the definitive certificate for the
appropriate amount of fully paid ordinary shares and a new certificate for any
unconverted limited voting shares comprised in the certificate surrendered by
him. In the meantime, transfers will be certified against the register.
3.7A The Company shall use all reasonable efforts to ensure that all the
ordinary shares arising from conversion are admitted to the Official List of the
London Stock Exchange.
3.8A Conversion of such limited voting shares from time to time may be effected,
subject to the articles, by their redesignation and conversion into ordinary
shares.
3.9A The Company shall procure that at all times there shall be sufficient
unissued ordinary share capital available for the purposes of effecting
conversion of all outstanding limited voting shares.
3.10A If any date specified for the conversion of any limited voting shares
pursuant to this article 3A would otherwise fall on a day which is not a
business day, such date shall be the next following business day.
3.11A The quorum for any meeting of the holders of the limited voting shares
shall be two holders of limited voting shares present in person or by proxy or
one holder if there be only one such holder. A resolution in writing executed by
each member who would have been entitled to vote upon it if it had been proposed
at a class meeting at which he was present shall be as effectual as if it had
been passed at a class meeting duly
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convened and held and may consist of several instruments in the like form
executed by each member.
3.12A On a transfer by any member of the Microsoft Group or any member of the
Liberty Group of any limited voting shares to a third party, the shares so
transferred shall be converted upon approval by the board into ordinary shares
at the conversion rate in accordance with Article 3.8A. The board shall approve
any such conversion unless the directors shall have determined to their
reasonable satisfaction (including through appropriate representations made by
the transferor and/or the third party) that (i) such transferor shall,
individually or as part of a group, remain the "beneficial owner" (as defined in
the Indentures) of such ordinary shares following the transfer to such third
party and (ii) such conversion upon the transfer to such party shall result in a
debenture change of control. In making such determination, no Microsoft
Designated Director (while a member of the Microsoft Group holds or is
interested in limited voting shares) or Liberty Designated Director (while a
member of the Liberty Group holds or is interested in limited voting shares)
shall be entitled to participate in such board decision.
AUTHORITY TO ALLOT
4.1 Subject to the Acts and relevant authority of the Company in general meeting
required by the Acts, the board has general and unconditional authority to allot
(with or without conferring rights of renunciation), grant options over, offer
or otherwise deal with or dispose of unissued shares (whether forming part of
the original or any increased capital), or rights to subscribe for or convert
any security into shares, to such persons, at such times and on such terms and
conditions as the board may decide but no share may be issued at a discount.
4.2 The board may at any time after the allotment of a share but before a person
has been entered in the register as the holder of the share recognise a
renunciation of the share by the allottee in favour of another person and may
grant to an allottee a right to effect a renunciation on the terms and
conditions the board thinks fit.
POWER TO ATTACH RIGHTS
5. Subject to the Acts and to the rights attached to existing shares, new shares
may be allotted or issued with or have attached to them such special rights or
restrictions as the Company may by ordinary resolution decide, or, if no
resolution is passed, as the board may decide.
REDEEMABLE SHARES
6. Subject to the Acts and to the rights attached to existing shares, shares may
be issued on terms that they are to be redeemed or, at the option of the Company
or the holder, are liable to be redeemed.
VARIATION OF RIGHTS
7.1 Subject to the Acts, the rights attached to a class of shares may be varied
whether or not the Company is being wound up (i) in such manner (if any) as may
be provided by those rights, or (ii) in the absence of any such provision,
either with the consent in writing of the holders of at least three-fourths of
the nominal amount of the
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issued shares of that class or with the sanction of an extraordinary resolution
passed at a separate meeting of the holders of the issued shares of that class
validly held in accordance with the articles, but not otherwise. Any variation
of the rights attaching to the limited voting shares shall be deemed to be a
variation of the class rights attaching to the ordinary shares and will require
a special resolution of the Company (requiring at least three-fourths of the
nominal amount of the limited voting shares and ordinary shares then in issue to
vote in favour of such resolution).
7.2 The rights attached to a class of shares are not, unless otherwise expressly
provided in the rights attaching to those shares, deemed to be varied by the
creation or issue of further shares ranking pari passu with or subsequent to
them or by the purchase or redemption by the Company of its own shares in
accordance with the Acts and article 38.
COMMISSION
8. The Company may exercise all powers conferred or permitted by the Acts of
paying commission or brokerage. Subject to the Acts, commission or brokerage may
be satisfied by the payment of cash or the allotment of fully- or partly-paid
shares or the grant of an option to call for an allotment of shares or by any
combination of these methods.
TRUSTS NOT RECOGNISED
9. Except as ordered by a court of competent jurisdiction or as required by law,
the Company shall not recognise a person as holding a share on trust and is not
bound by or otherwise compelled to recognise (even if it has notice of it) an
equitable, contingent, future, partial or other claim to or interest in a share
other than an absolute right in the holder to the whole of the share.
SHARE CERTIFICATES
RIGHT TO CERTIFICATE
10.1 Subject to the Acts and the requirements of the London Stock Exchange, a
person (except a recognised person in respect of whom the Company is not
required by law to complete and have ready for delivery a certificate) on
becoming the holder of a share is entitled without charge, to one certificate
for all the shares of a class registered in his name or, in the case of shares
of more than one class being registered in his name, to a separate certificate
for each class of shares.
10.2 Where a member (other than a recognised person) transfers part of his
shares comprised in a certificate he is entitled, without charge, to one
certificate for the balance of shares retained by him.
10.3 The Company is not bound to issue more than one certificate for shares held
jointly by two or more persons and delivery of a certificate to one joint holder
is sufficient delivery to all joint holders.
10.4 A certificate shall specify the number and class and the distinguishing
numbers (if any) of the shares in respect of which it is issued and the amount
paid up on the
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shares. It shall be issued under a seal, which may be affixed to or printed on
it, or in such other manner as the board may approve, having regard to the terms
of issue and the requirements of the London Stock Exchange.
REPLACEMENT CERTIFICATES
11.1 Where a member holds two or more certificates for shares of one class, the
board may at his request, on surrender of the original certificates and without
charge, cancel the certificates and issue a single replacement certificate.
11.2 At the request of a member, the board may cancel a certificate and issue
two or more in its place (representing shares in such proportions as the member
may specify), on surrender of the original certificate and on payment of such
reasonable sum as the board may decide.
11.3 Where a certificate is worn out, defaced, lost or destroyed, the board may
cancel it and issue a replacement certificate on such terms as to provision of
evidence and indemnity and to payment of any exceptional out-of-pocket expenses
incurred by the Company in the investigation of that evidence and the
preparation of that indemnity as the board may decide, and on surrender of the
original certificate (where it is worn out or defaced).
LIEN
COMPANY'S LIEN ON SHARES NOT FULLY PAID
12.1 The Company has a first and paramount lien on every share (other than a
fully-paid share) registered in the name of a member (whether solely or jointly
with another person) for an amount payable in respect of the share, whether the
due date for payment has arrived or not. The lien applies to all dividends from
time to time declared or other amounts payable in respect of the share.
12.2 The board may either generally or in a particular case declare a share to
be wholly or partly exempt from the provisions of this article 12. Unless
otherwise agreed with the transferee, the registration of a transfer of a share
operates as a waiver of the Company's lien (if any) on that share.
ENFORCEMENT OF LIEN BY SALE
13.1 For the purpose of enforcing the lien, the board may sell shares subject to
the lien in such manner as it may decide, if the due date for payment of the
relevant amounts has arrived and payment is not made within 14 clear days after
the service of a notice in writing (stating, and demanding payment of, the
amounts and giving notice of the intention to sell in default of payment) on the
member concerned (or to a person entitled by transmission to the shares).
13.2 To give effect to a sale, the board may authorise a person to execute an
instrument of transfer of shares in the name and on behalf of the holder of or
the person entitled by transmission to the shares to the purchaser or his
nominee. The purchaser is not bound to see to the application of the purchase
money and the title of the transferee
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is not affected by an irregularity in or invalidity of the proceedings connected
with the sale.
APPLICATION OF PROCEEDS OF SALE
14. The net proceeds of a sale effected under article 13, after payment of the
costs of the sale, shall be applied by the Company in or towards satisfaction of
the amount in respect of which the lien exists. Any residue shall (on surrender
to the Company for cancellation of the certificate for the shares sold, or the
provision of an indemnity (with or without security) as to any lost or destroyed
certificate required by the board and subject to a like lien for amounts not
presently payable as existed on the shares before the sale) be paid to the
member or a person entitled by transmission to the shares immediately before the
sale.
CALLS ON SHARES
CALLS
15. Subject to the terms of issue, the board may make calls on members in
respect of amounts unpaid on the shares or a class of shares held by them
respectively (whether in respect of nominal value or a premium) and not payable
on a date fixed by or in accordance with the terms of issue. Each member shall
(on receiving at least 14 clear days' notice specifying when and where payment
is to be made) pay to the Company the amount called as required by the notice. A
call may be made payable by installments and may, at any time before receipt by
the Company of an amount due, be revoked or postponed in whole or in part as the
board may decide. A call is deemed made at the time when the resolution of the
board authorising it is passed. A person on whom a call is made remains liable
to pay the amount called despite the subsequent transfer of the share in respect
of which the call is made. The joint holders of a share are jointly and
severally liable for payment of a call in respect of that share.
POWER TO DIFFERENTIATE
16. The board may make arrangements on the allotment or issue of shares for a
difference between the allottees or holders in the amounts and times of payment
of a call on their shares.
INTEREST ON CALLS
17. If the whole of the amount called is not paid on or before the date fixed
for payment, the person by whom it is payable shall pay interest on the unpaid
amount at such rate as may be fixed by the terms of allotment of the share or,
if no rate is fixed, at such rate (not exceeding, without the sanction of the
Company given by ordinary resolution, 20 per cent. per annum) as the board may
decide, from and including the date fixed for payment until but excluding the
date of actual payment and all costs, charges and expenses incurred by the
Company by reason of the non-payment. The board may waive payment of the
interest in whole or in part.
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PAYMENT IN ADVANCE
18. The board may, if it thinks fit, receive from a member all or part of the
amounts uncalled and unpaid on shares held by him. A payment in advance of calls
extinguishes to the extent of the payment the liability of the member on the
shares in respect of which it is made. The Company may pay interest on the
amount paid in advance, or on so much of it as from time to time exceeds the
amount called on the shares in respect of which the payment in advance has been
made, at such rate (not exceeding, without the sanction of the Company given by
ordinary resolution, 20 per cent. per annum) as the board may decide.
AMOUNTS DUE ON ALLOTMENT TREATED AS CALLS
19. An amount which becomes payable in respect of a share on allotment or on a
date fixed pursuant to the terms of allotment (whether in respect of nominal
value or a premium) or as an installment of a call is deemed to be a call. In
case of non-payment, the provisions of the articles as to payment of interest
and costs, charges and expenses, forfeiture or otherwise apply as if that amount
has become payable by virtue of a call.
FORFEITURE
NOTICE IF CALL NOT PAID
20. If a member fails to pay the whole of a call or an installment of a call on
or before the date fixed for payment, the board may serve notice on the member
or on a person entitled by transmission to the share in respect of which the
call was made demanding payment, on a date not less than 14 clear days from the
date of the notice, of the amount of the call outstanding and any interest that
may have accrued on it and all costs, charges and expenses incurred by the
Company by reason of the non-payment. The notice shall state (i) the place where
payment is to be made, and (ii) that if the notice is not complied with the
share in respect of which the call was made will be liable to be forfeited.
FORFEITURE FOR NON-COMPLIANCE
21. If the notice referred to in article 20 is not complied with, a share in
respect of which it is given may, at any time before payment required by the
notice has been made, be forfeited by a resolution of the board. The forfeiture
includes all dividends declared or other amounts payable in respect of the
forfeited share and not paid before the forfeiture.
NOTICE AFTER FORFEITURE
22. When a share has been forfeited, the Company shall serve notice of the
forfeiture on the person who was before forfeiture the holder of the share or
the person entitled by transmission to the share but no forfeiture is
invalidated by an omission to give notice. An entry of the fact and date of
forfeiture shall be made in the register.
DISPOSAL OF FORFEITED SHARES
23.1 Until canceled in accordance with the Acts, a forfeited share and all
rights attaching to it are deemed to be the property of the Company and may be
sold, re-
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allotted or otherwise disposed of either to the person who was before the
forfeiture the holder or to another person, on such terms and in such manner as
the board may decide. Where for this purpose a forfeited share is to be
transferred, the board may authorise a person to execute an instrument of
transfer of the share to the transferee. The Company may receive the
consideration (if any) for the share on its disposal and may register the
transferee as the holder of the share.
23.2 The board may before a forfeited share has been canceled, sold, re-allotted
or otherwise disposed of annul the forfeiture on such conditions as it thinks
fit.
23.3 A statutory declaration by a director or the secretary that a share has
been forfeited on the date stated in the declaration is conclusive evidence of
the facts stated in the declaration against all persons claiming to be entitled
to the share. The declaration (subject if necessary to the execution of an
instrument of transfer) constitutes good title to the share and the person to
whom the share is disposed of is not bound to see to the application of the
consideration (if any). His title to the share is not affected by an
irregularity in or invalidity of the proceedings connected with the forfeiture
or disposal.
ARREARS TO BE PAID NOTWITHSTANDING FORFEITURE
24. A person whose share has been forfeited ceases on forfeiture to be a member
in respect of it and shall surrender to the Company for cancellation the
certificate for the forfeited share or shares. He remains liable to pay, and
shall immediately pay to the Company, all calls, interest, costs, charges and
expenses owing in respect of the share at the time of forfeiture, with interest,
from the time of forfeiture until payment, at such rate as may be fixed by the
terms of allotment of the share or, if no rate is fixed, at the rate (not
exceeding, without the sanction of the Company given by ordinary resolution, 20
per cent. per annum) as the board may decide. The board may if it thinks fit
enforce payment without allowance for the value of the share at the time of
forfeiture or for consideration received on disposal.
SURRENDER
25. The board may accept the surrender of a share liable to be forfeited and in
that case references in the articles to forfeiture include surrender.
UNTRACED SHAREHOLDERS
POWER OF SALE
26.1 The Company is entitled to sell a share if:
(a) during a period of not less than 12 years before the date of publication of
the advertisements referred to in article 26.1(c) (or, if published on two
different dates, the first date) (the RELEVANT PERIOD) the Company has paid
at least three cash dividends (whether interim or final);
(b) throughout the relevant period no cheque, order or warrant sent by the
Company by post in a pre-paid envelope addressed to the holder of the
share, or to the person entitled by transmission to the share, at his
address on the register or other last-known address given by the member or
other person has
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been cashed, and no communication has been received by the Company from the
member or person entitled by transmission (in his capacity as member or
person entitled by transmission);
(c) on expiry of the relevant period the Company has given notice of its
intention to sell the share by advertisement in a leading daily newspaper
and in a newspaper circulating in the area of the address referred to in
article 26.1(b);
(d) the Company has not during a further period of three months after the date
of the advertisements referred to in article 26.1(c) (or the later
advertisement if the advertisements are published on different dates) and
before the exercise of the power of sale received a communication from the
member or person entitled by transmission (in his capacity as member or
person entitled by transmission); and
(e) the Company has first given notice in writing to the London Stock Exchange
of its intention to sell the share.
26.2 In addition to the power of sale conferred by article 26.1, if during the
relevant period or a further period ending on the date when all the requirements
of article 26.1(a) to (e) have been satisfied an additional share has been
issued in right of that held at the beginning of, or previously so issued
during, those periods and all the requirements of article 27.1(a) to (e) have
been satisfied in respect of the additional share, the Company is entitled to
sell the additional share.
26.3 To give effect to a sale pursuant to article 26.1 or 26.2, the board may
authorise a person to execute an instrument of transfer of the share in the name
and on behalf of the holder of, or the person entitled by transmission to, the
share to the purchaser or his nominee. The purchaser is not bound to see to the
application of the purchase money and the title of the transferee is not
affected by an irregularity or invalidity in the proceedings connected with the
sale of the share.
APPLICATION OF PROCEEDS OF SALE
27. The Company shall account to the member or other person entitled by
transmission to the share for the net proceeds of sale by carrying all amounts
received on sale to a separate account. The Company is deemed to be a debtor and
not a trustee in respect of those amounts for the member or other person.
Amounts carried to the separate account may either be employed in the business
of the Company or invested as the board may think fit. No interest is payable on
those amounts and the Company is not required to account for money earned on
them.
TRANSFER OF SHARES
FORM OF TRANSFER
28. A member may transfer all or any of his shares by instrument of transfer in
writing in any usual form or in another form approved by the board, and the
instrument shall be executed by or on behalf of the transferor and (in the case
of a transfer of a share which is not fully paid) by or on behalf of the
transferee. The transferor is deemed
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to remain the holder of the share until the name of the transferee is entered in
the register in respect of it.
RIGHT TO REFUSE REGISTRATION
29.1 Subject to articles 67 and 68, the board may, in its absolute discretion
and (except where the reason (or one of the reasons) for refusal is that the
transfer will give rise to a Notifiable Situation within the meaning of article
68.1, in which circumstances notice shall be given to the transferor containing
a statement of the kind described in article 68.4) without giving a reason,
refuse to register the transfer of a share or renunciation of a renounceable
letter of allotment unless all of the following conditions are satisfied:
(a) it is in respect of a share on which the Company has no lien;
(b) it is in respect of only one class of shares;
(c) it is in favour of a single transferee or renouncee or not more than four
joint transferees or renouncees;
(d) it is duly stamped (if required);
(e) it is delivered for registration to the office or such other place as the
board may decide, accompanied by the certificate for the shares to which it
relates (except in the case of a transfer by a recognised person where a
certificate has not been issued, or in the case of a renunciation) and such
other evidence as the board may reasonably require to prove the title of
the transferor or person renouncing and the due execution by him of the
transfer or renunciation or, if the transfer or renunciation is executed by
some other person on his behalf, the authority of that person to do so;
(f) it is not a transfer which is not to be registered pursuant to article
67.1(b)(ii)(B);
(g) it will not give rise to a Notifiable Situation within the meaning of
article 68.1; and
(h) a Disposal Notice within the meaning of article 68.6 has not been served in
respect of that share or has been served but has been withdrawn (unless the
transfer in question is to complete a Required Disposal of that share
within the meaning of article 68.1).
29.2 The board may, in its absolute discretion and without giving any reason,
refuse to register the transfer of a share which is not fully paid, provided
that the refusal does not prevent dealings in shares in the Company from taking
place on an open and proper basis.
29.3 If the board refuses to register the transfer of a share it shall, within
two months after the date on which the transfer was lodged with the Company,
send notice of the refusal to the transferee. An instrument of transfer which
the board refuses to register shall (except in the case of suspected fraud) be
returned to the person depositing it. All
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instruments of transfer which are registered may, subject to article 141, be
retained by the Company.
FEES ON REGISTRATION
30. No fee may be charged by the Company for registering the transfer of a share
or the renunciation of a renounceable letter of allotment or other document
relating to or affecting the title to a share or the right to transfer it or for
making any other entry in the register.
SUSPENSION OF REGISTRATION AND CLOSING OF REGISTER
31. The registration of transfers may be suspended at such times and for such
period (not exceeding 30 days in any year) as the board may decide and either
generally or in respect of a particular class of shares.
TRANSMISSION OF SHARES
ON DEATH
32.1 The Company may recognise only the personal representatives of a deceased
member as having title to a share held by that member alone or to which he alone
was entitled. In the case of a share held jointly by more than one person, the
Company may recognise only the survivor or survivors as being entitled to it.
32.2 Nothing in the articles releases the estate of a deceased member from
liability in respect of a share which has been solely or jointly held by him.
ELECTION OF PERSON ENTITLED BY TRANSMISSION
33.1 A person becoming entitled by transmission to a share may, on production of
any evidence the board may require, elect either to be registered as a member or
to have a person nominated by him registered as a member.
33.2 If he elects to be registered himself, he shall give notice to the Company
to that effect. If he elects to have another person registered, he shall execute
an instrument of transfer of the share to that person. All the provisions of the
articles relating to the transfer of shares apply to the notice or instrument of
transfer (as the case may be) as if it were an instrument of transfer executed
by the member and his death, bankruptcy or other event giving rise to a
transmission of entitlement had not occurred.
33.3 The board may give notice requiring a person to make the election referred
to in article 33.1. If that notice is not complied with within 60 days, the
board may withhold payment of all dividends and other amounts payable in respect
of the share until notice of election has been made.
RIGHTS ON TRANSMISSION
34. Where a person becomes entitled by transmission to a share, the rights of
the holder in relation to that share cease. The person entitled by transmission
may, however, give a good discharge for dividends and other amounts payable in
respect of the share and, subject to articles 33 and 124, has the rights to
which he would be entitled
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if he were the holder of the share. The person entitled by transmission is not,
however, before he is registered as the holder of the share, entitled in respect
of it to receive notice of or exercise rights conferred by membership in
relation to meetings of the Company or a separate meeting of the holders of a
class of shares.
ALTERATION OF SHARE CAPITAL
INCREASE, CONSOLIDATION, SUB-DIVISION AND CANCELLATION
35. The Company may by ordinary resolution:
(a) increase its share capital by a sum to be divided into shares of an amount
prescribed by the resolution;
(b) consolidate and divide all or any of its share capital into shares of a
larger amount than its existing shares;
(c) subject to the Acts, sub-divide all or any of its shares into shares of a
smaller amount and may by the resolution decide that the shares resulting
from the sub-division have amongst themselves a preference or other
advantage or be subject to a restriction; and
(d) cancel shares which, at the date of the passing of the resolution, have not
been taken or agreed to be taken by a person and diminish the amount of its
share capital by the amount of the shares so canceled.
REDESIGNATION
35A. The Company may by special resolution passed at the extraordinary general
meeting of the Company convened on 27 October 1999 (or any adjournment thereof)
(i) redesignate and convert 57,312,938 ordinary shares registered in the name of
MediaOne UK Cable, Inc. into limited voting shares, and (ii) grant power and
authority to members of the Microsoft Group and/or the Liberty Group to
redesignate any or all of their holding of ordinary shares into limited voting
shares, in each case having the class rights ascribed to them in article 3A.
FRACTIONS
36. If, as the result of consolidation and division or sub-division of shares,
members become entitled to fractions of a share, the board may on behalf of the
members deal with the fractions as it thinks fit. In particular, the board may:
(a) sell fractions of a share to a person (including, subject to the Acts, to
the Company) for the best price reasonably obtainable and distribute the
net proceeds of sale in due proportion amongst the persons entitled (except
that if the amount due to a person is less than (pound)3, or such other sum
as the board may decide, the sum may be retained for the benefit of the
Company). To give effect to a sale the board may authorise a person to
execute an instrument of transfer of shares to the purchaser or his nominee
and may cause the name of the purchaser or his nominee to be entered in the
register as the holder of the shares. The purchaser is not bound to see to
the application of the purchase
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money and the title of the transferee to the shares is not affected by an
irregularity or invalidity in the proceedings connected with the sale; or
(b) subject to the Acts, issue to a member credited as fully paid by way of
capitalisation the minimum number of shares required to round up his
holding of shares to a number which, following consolidation and division
or sub-division, leaves a whole number of shares (such issue being deemed
to have been effected immediately before consolidation or sub-division, as
the case may be). The amount required to pay up those shares may be
capitalised as the board thinks fit out of amounts standing to the credit
of reserves (including a share premium account, capital redemption reserve
and profit and loss account), whether or not available for distribution,
and applied in paying up in full the appropriate number of shares. A
resolution of the board capitalising part of the reserves has the same
effect as if the capitalisation had been declared by ordinary resolution of
the Company pursuant to article 131. In relation to the capitalisation the
board may exercise all the powers conferred on it by article 131 without an
ordinary resolution of the Company.
REDUCTION OF CAPITAL
37. Subject to the Acts and article 3A and to the rights attached to existing
shares, the Company may by special resolution reduce its share capital, capital
redemption reserve, share premium account or other undistributable reserve in
any way.
PURCHASE OF OWN SHARES
38. Subject to the Acts and article 3A, the Company may purchase shares of any
class (including redeemable shares) in its own capital in any way. If at the
date proposed for approval of the proposed purchase there are in issue shares of
a class entitling the holders to convert into shares of another class, no
purchase may take place unless either:
(a) it has been sanctioned by an extraordinary resolution passed at a separate
meeting (or meetings if there are two or more classes) of the holders of
that class of convertible shares; or
(b) the terms of issue of such convertible shares include provisions permitting
the Company to purchase its own shares.
GENERAL MEETINGS
ANNUAL GENERAL MEETING
39. The Company shall hold annual general meetings, which shall be convened by
the board, in accordance with the Acts.
EXTRAORDINARY GENERAL MEETING
40. All general meetings of the Company other than annual general meetings are
called extraordinary general meetings.
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CONVENING OF EXTRAORDINARY GENERAL MEETINGS
41. The board may convene an extraordinary general meeting whenever it thinks
fit. The board must convene an extraordinary general meeting immediately on
receipt of a requisition from members in accordance with the Acts and in default
a meeting may be convened by requisitionists as provided in the Acts. At a
meeting convened on a requisition or by requisitionists no business may be
transacted except that stated by the requisition or proposed by the board. An
extraordinary general meeting may also be convened in accordance with article
94.
LENGTH AND FORM OF NOTICE
42.1 An annual general meeting and an extraordinary general meeting called for
the passing of a special resolution shall be called by not less than 21 clear
days' notice. All other extraordinary general meetings shall be called by not
less than 14 clear days' notice.
42.2 Subject to the Acts, and although called by shorter notice than that
specified in article 42.1, a general meeting is deemed to have been duly called
if it is so agreed:
(a) in the case of an annual general meeting, by all the members entitled to
attend and vote at the meeting; and
(b) in the case of another meeting, by a majority in number of the members
having a right to attend and vote at the meeting, being a majority together
holding not less than 95 per cent. in nominal value of the shares giving
that right.
42.3 The notice of meeting shall specify:
(a) whether the meeting is an annual general meeting or an extraordinary
general meeting;
(b) the place, the date and the time of the meeting;
(c) in the case of special business, the general nature of that business;
(d) if the meeting is convened to consider a special or an extraordinary
resolution, the intention to propose the resolution as such; and
(e) with reasonable prominence, that a member entitled to attend and vote may
appoint one or more proxies to attend and, on a poll, vote instead of him
and that a proxy need not also be a member.
42.4 The notice of meeting shall be given to the members (other than any who,
under the provisions of the articles or the terms of issue of shares, are not
entitled to receive notice), to the directors and to the auditors.
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OMISSION TO SEND NOTICE
43. The accidental omission to send a notice of meeting or, in cases where it is
sent out with the notice, an instrument of proxy to, or the non-receipt of
either by, a person entitled to receive it does not invalidate the proceedings
at a general meeting.
SPECIAL BUSINESS
44. All business transacted at a general meeting is deemed special except the
following business at an annual general meeting:
(a) the receipt and consideration of the annual accounts, the directors' report
and auditors' report on those accounts;
(b) the appointment of directors and other officers in place of those retiring
by rotation or otherwise ceasing to hold office;
(c) the declaration of dividends;
(d) the appointment of the auditors (when special notice of the resolution for
appointment is not required by the Acts) and the fixing, or determination
of the manner of the fixing, of their remuneration; and
(e) the renewal of the authorities of the Company in general meeting required
by the Acts and the articles in relation to the allotment of shares.
PROCEEDINGS AT GENERAL MEETINGS
QUORUM
45.1 No business may be transacted at a general meeting unless a quorum is
present at the start of the meeting. The absence of a quorum does not prevent
the appointment of a chairman in accordance with the articles, which is not
treated as part of the business of the meeting.
45.2 The quorum for a general meeting is for all purposes two members present in
person or by proxy and entitled to vote.
PROCEDURE IF QUORUM NOT PRESENT
46.1 If a quorum is not present within five minutes (or such longer period as
the chairman in his absolute discretion may decide) from the time fixed for the
start of the meeting or if during the meeting a quorum ceases to be present, the
meeting, if convened by or on the requisition of members, is dissolved. In any
other case it stands adjourned to such time (being not less than 14 days nor
more than 28 days later) and place as the chairman (or, in default, the board)
decides.
46.2 At an adjourned meeting the quorum is two members present in person or by
proxy and entitled to vote. If a quorum is not present within five minutes (or
such longer period as the chairman in his absolute discretion may decide) from
the time fixed for the start of the meeting or if during the meeting a quorum
ceases to be present, the adjourned meeting is dissolved.
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46.3 The Company shall give not less than seven clear days' notice of any
meeting adjourned for the lack of a quorum and the notice shall state the quorum
requirement.
CHAIRMAN
47. The chairman (if any) of the board or, in his absence, the deputy chairman
(if any) shall preside as chairman at a general meeting. If there is no chairman
or deputy chairman, or if at a meeting neither is present within five minutes
after the time fixed for the start of the meeting, or neither is willing to act,
the directors present shall select one of their number to be chairman. If only
one director is present and willing to act, he shall be chairman. In default,
the members present in person and entitled to vote shall choose one of their
number to be chairman.
DIRECTOR'S RIGHT TO ATTEND AND SPEAK
48. A director is entitled to attend and speak at a general meeting and at a
separate meeting of the holders of a class of shares or debentures whether or
not he is a member.
POWER TO ADJOURN
49.1 The chairman may, with the consent of a meeting at which a quorum is
present (and shall, if so directed by the meeting) adjourn a meeting from time
to time and from place to place or for an indefinite period.
49.2 Without prejudice to any other power which he may have under the provisions
of the articles or at common law, the chairman may, without the consent of the
meeting, interrupt or adjourn a meeting from time to time and from place to
place or for an indefinite period if he decides that it has become necessary to
do so in order to (i) secure the proper and orderly conduct of the meeting, or
(ii) give all persons entitled to do so a reasonable opportunity of speaking and
voting at the meeting, or (iii) ensure that the business of the meeting is
properly disposed of.
NOTICE OF ADJOURNED MEETING
50. Without prejudice to article 46.3, whenever a meeting is adjourned for 28
days or more or for an indefinite period, at least seven clear days' notice
specifying the place, date and time of the adjourned meeting and the general
nature of the business to be transacted shall be given to the members (other
than any who, under the provisions of the articles or the terms of issue of the
shares, are not entitled to receive notice), the directors and the auditors.
Except in these circumstances, and subject to article 46.3, it is not necessary
to give notice of an adjourned meeting or of the business to be transacted at
the adjourned meeting.
BUSINESS AT ADJOURNED MEETING
51. No business may be transacted at an adjourned meeting other than the
business which might properly have been transacted at the meeting from which the
adjournment took place.
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ACCOMMODATION OF MEMBERS AT MEETING
52. If it appears to the chairman that the meeting place specified in the notice
convening the meeting is inadequate to accommodate all members entitled and
wishing to attend, the meeting is duly constituted and its proceedings valid if
the chairman is satisfied that adequate facilities are available to ensure that
a member who is unable to be accommodated is able to (i) participate in the
business for which the meeting has been convened, and (ii) hear and see all
persons present who speak (whether by the use of microphones, loud-speakers,
audio-visual communications equipment or otherwise), whether in the meeting
place or elsewhere, and (iii) be heard and seen by all other persons present in
the same way.
SECURITY
53. The board may make any arrangement and impose any restriction it considers
appropriate to ensure the security of a meeting including, without limitation,
the searching of a person attending the meeting and the restriction of the items
of personal property that may be taken into the meeting place. The board is
entitled to refuse entry to a meeting to a person who refuses to comply with
these arrangements or restrictions.
VOTING
METHOD OF VOTING
54.1 At a general meeting, a resolution put to the vote of the meeting is
decided by a show of hands unless (before or on the declaration of the result of
the show of hands) a poll is duly demanded.
54.2 Subject to the Acts, a poll may be demanded on any question by:
(a) the chairman of the meeting;
(b) not less than five members present in person or by proxy and entitled to
vote;
(c) a member or members present in person or by proxy representing in aggregate
not less than one-tenth of the total voting rights of all the members
having the right to vote at the meeting; or
(d) a member or members present in person or by proxy holding shares conferring
a right to vote at the meeting, being shares on which an aggregate sum has
been paid up equal to not less than one-tenth of the total sum paid up on
all the shares conferring that right.
54.3 A demand by a proxy is deemed to be a demand by the member appointing the
proxy.
54.4 Unless a poll is demanded and the demand is not withdrawn, a declaration by
the chairman that the resolution has been carried, or carried by a particular
majority, or lost or not carried by a particular majority, and an entry to that
effect in the book containing the minutes of proceedings, is conclusive evidence
of the fact without proof of the number or proportion of the votes recorded in
favour of or against the resolution.
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PROCEDURE ON A POLL
55.1 If a poll is properly demanded, it shall be taken in such manner as the
chairman directs. He may appoint scrutineers, who need not be members, and may
fix a time and place for declaring the result of the poll. The result of the
poll is deemed to be the resolution of the meeting at which the poll is
demanded.
55.2 A poll demanded on the election of a chairman or on any question of
adjournment shall be taken at the meeting and without adjournment. A poll
demanded on another question shall be taken at such time and place as the
chairman decides, either at once or after an interval or adjournment (but not
more than 30 clear days after the date of the demand).
55.3 No notice need be given of a poll not taken immediately if the time and
place at which it is to be taken are announced at the meeting at which it is
demanded. In any other case at least seven clear days' notice shall be given
specifying the time and place at which the poll is to be taken.
55.4 The demand for a poll may be withdrawn but only with the consent of the
chairman. A demand withdrawn in this way validates the result of a show of hands
declared before the demand is made. In the case of a poll demanded before the
declaration of the result of a show of hands, the meeting shall continue as if
the demand has not been made.
55.5 The demand for a poll (other than on the election of the chairman or on a
question of adjournment) does not prevent the meeting continuing for the
transaction of business other than the question on which a poll has been
demanded.
55.6 On a poll, votes may be given in person or by proxy and a member entitled
to more than one vote need not, if he votes, use all his votes or cast all the
votes he uses in the same way.
VOTES OF MEMBERS
56.1 Subject to article 71 and to special terms as to voting on which shares
have been issued (including in article 3A), or a suspension or abrogation of
voting rights pursuant to the articles, at a general meeting every member
present in person has on a show of hands one vote and every member present in
person or by proxy has on a poll one vote for every share of which he is the
holder.
56.2 In the case of joint holders of a share, the vote of the senior who tenders
a vote, whether in person or by proxy, shall be accepted to the exclusion of the
votes of the other joint holders, and seniority is determined by the order in
which the names of the holders stand in the register.
56.3 A member in respect of whom an order has been made by a court or official
having jurisdiction (whether in the United Kingdom or elsewhere) that he is or
may be suffering from mental disorder or is otherwise incapable of running his
affairs may vote, whether on a show of hands or on a poll, by his guardian,
receiver, curator bonis or other person authorised for that purpose and
appointed by the court. A guardian, receiver, curator bonis or other person may,
on a poll, vote by proxy if evidence (to the
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satisfaction of the board) of the authority of the person claiming to exercise
the right to vote is deposited at the office (or at another place specified in
accordance with the articles for the deposit of instruments of proxy) within the
time limits prescribed by the articles for the deposit of instruments of proxy
for use at the meeting, adjourned meeting or poll at which the right to vote is
to be exercised.
NO CASTING VOTE
57. In the case of an equality of votes the chairman shall not have, whether on
a show of hands or on a poll, a casting vote in addition to a vote to which he
is entitled as a member.
RESTRICTION ON VOTING RIGHTS FOR UNPAID CALLS ETC.
58. Unless the board otherwise decides, no member is entitled in respect of a
share held by him to be present or to vote, either in person or by proxy, at a
general meeting or at a separate meeting of the holders of a class of shares or
on a poll, or to exercise other rights conferred by membership in relation to
the meeting or poll, if a call or other amount due and payable in respect of the
share is unpaid. This restriction ceases on payment of the amount outstanding
and all costs, charges and expenses incurred by the Company by reason of the
non-payment.
VOTING BY PROXY
59.1 An instrument appointing a proxy shall be in writing in any usual form (or
in another form approved by the board) executed by the appointor or his duly
constituted attorney or, if the appointor is a company, under its seal or under
the hand of its duly authorised officer or attorney or other person authorised
to sign.
59.2 An instrument of proxy is deemed (unless the contrary is stated in it) to
confer authority to demand or join in demanding a poll and to vote on a
resolution or amendment of a resolution put to, or other business which may
properly come before, the meeting or meetings for which it is given, as the
proxy thinks fit.
59.3 A proxy need not be a member.
59.4 A member may appoint more than one proxy to attend on the same occasion.
When two or more valid but differing instruments of proxy are delivered for the
same share for use at the same meeting, the one which is last validly delivered
(regardless of its date or the date of its execution) shall be treated as
replacing and revoking the other or others as regards that share.
59.5 Deposit of an instrument of proxy does not prevent a member attending and
voting in person at the meeting or an adjournment of the meeting or on a poll.
59.6 An instrument of proxy is (unless the contrary is stated in it) valid for
an adjournment of the meeting as well as for the meeting or meetings to which it
relates. An instrument of proxy is valid for 12 months from the date of
execution.
59.7 Subject to the Acts, the Company may send an instrument of proxy to all or
none of the persons entitled to receive notice of and to vote at a meeting. If
sent the instrument shall provide for two-way voting (without prejudice to a
right to abstain) on all resolutions set out in the notice of meeting.
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DEPOSIT OF PROXY
60.1 An instrument of proxy, and (if required by the board) a power of attorney
or other authority under which it is executed or a copy of it notarially
certified or certified in some other way approved by the board, shall be:
(a) deposited at the office, or another place in the United Kingdom specified
in the notice convening the meeting or in an instrument of proxy or other
accompanying document sent by the Company in relation to the meeting, not
less than 48 hours before the time for holding the meeting or adjourned
meeting or the taking of a poll at which the person named in the instrument
proposes to vote;
(b) in the case of a meeting adjourned for less than 28 days but more than 48
hours or in the case of a poll taken more than 48 hours after it is
demanded, deposited as required by article 60.1(a) not less than 24 hours
before the time appointed for the holding of the adjourned meeting or the
taking of the poll; or
(c) in the case of a meeting adjourned for less than 48 hours or in the case of
a poll not taken immediately but taken not more than 48 hours after it was
demanded, delivered at the adjourned meeting or at the meeting at which the
poll was demanded to the chairman or to the secretary or to a director.
60.2 An instrument of proxy not deposited or delivered in accordance with
article 6.0 is invalid.
WHEN VOTES BY PROXY VALID THOUGH AUTHORITY REVOKED
61. A vote given or poll demanded by a proxy or authorised representative of a
company is valid despite termination of his authority unless notice of
termination is received by the Company at the office (or other place specified
for depositing the instrument of proxy) at least one hour before the time for
holding the meeting or adjourned meeting at which the vote is given or (in the
case of a poll taken otherwise than at or on the same day as the meeting or
adjourned meeting) the time appointed for the taking of the poll at which the
vote is cast.
MISCELLANEOUS
CORPORATE REPRESENTATIVE
62. A company which is a member may, by resolution of its directors or other
governing body, authorise a person (or, if such company is an Approved
Depositary acting in its capacity as such, persons) to act as its representative
(or, as the case may be, representatives) at a meeting or at a separate meeting,
or at all meetings or separate meetings, of the holders of a class of shares
(each a REPRESENTATIVE). A representative is entitled to exercise on behalf of
the company (in respect of that part of the company's holding of shares to which
the authorisation relates) those powers that the company could exercise if it
were an individual member. The company is for the purposes of the
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articles deemed to be present in person at a meeting if a representative is
present. All references to attendance and voting in person shall be construed
accordingly. A director, the secretary or other person authorised for the
purpose by the secretary may require a representative to produce a certified
copy of the resolution of authorisation before permitting him to exercise his
powers.
OBJECTIONS TO AND ERROR IN VOTING
63. No objection may be made to the qualification of a voter or to the counting
of, or failure to count, a vote, except at the meeting or adjourned meeting at
which the vote objected to is tendered or at which the error occurs. An
objection properly made shall be referred to the chairman and only invalidates
the result of the voting if, in the opinion of the chairman, it is of sufficient
magnitude to affect the decision of the meeting. The decision of the chairman is
conclusive and binding on all concerned.
AMENDMENTS TO RESOLUTIONS
64. If an amendment proposed to a resolution under consideration is ruled out of
order by the chairman the proceedings on the substantive resolution are not
invalidated by an error in his ruling.
MEMBERS' WRITTEN RESOLUTIONS
65. A resolution in writing executed by or on behalf of each member who would
have been entitled to vote upon it if it had been proposed at a general meeting
at which he was present is as effective as if it had been passed at a general
meeting duly convened and held. The resolution in writing may consist of several
instruments in the same form each duly executed by or on behalf of one or more
members. If the resolution in writing is described as a special resolution or as
an extraordinary resolution, it has effect accordingly.
CLASS MEETINGS
66. A separate meeting for the holders of a class of shares shall be convened
and conducted as nearly as possible in the same way as an extraordinary general
meeting, except that:
(a) no member, other than a director, is entitled to notice of it or to attend
unless he is a holder of shares of that class;
(b) no vote may be given except in respect of a share of that class;
(c) the quorum at the meeting is two persons present in person holding or
representing by proxy at least one-third in nominal value of the issued
shares of that class;
(d) the quorum at an adjourned meeting is two persons holding shares of that
class who are present in person or by proxy; and
(e) a poll may be demanded in writing by a member present in person or by proxy
and entitled to vote at the meeting and on a poll each member has one vote
for every share of that class of which he is the holder.
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FAILURE TO DISCLOSE INTERESTS IN SHARES
67.1 Subject to article 67.5, where notice is served by the Company under
section 212 of the Act (a SECTION 212 NOTICE) on a member, or another person
appearing to be interested in shares held by that member, and the member or
other person has failed in relation to any shares (the DEFAULT SHARES, which
expression includes any shares issued after the date of the section 212 notice
in right of those shares) to give the Company the information required within
the prescribed period from the date of the section 212 notice, the following
sanctions apply, unless the board otherwise decides:
(a) the member is not entitled in respect of the default shares to be present
or to vote (either in person or by proxy) at a general meeting or at a
separate meeting of the holders of a class of shares or on a poll, or to
exercise other rights conferred by membership in relation to the meeting or
poll; and
(b) where the default shares represent at least 0.25 per cent. in nominal value
of the issued shares of their class:
(i) a dividend (or any part of a dividend) or other amount payable in
respect of the default shares shall be withheld by the Company, which
has no obligation to pay interest on it, and the member is not
entitled to elect, pursuant to article 131, to receive shares instead
of a dividend; and
(ii) no transfer of any of the default shares shall be registered unless
the transfer is an excepted transfer or:
(A) the member is not himself in default in supplying the information
required; and
(B) the member proves to the satisfaction of the board that no person
in default in supplying the information required is interested in
any of the shares the subject of the transfer.
67.2 The sanctions under article 67.1 shall cease to apply seven days after the
earlier of:
(a) receipt by the Company of notice of an excepted transfer, but only in
relation to the shares transferred; and
(b) receipt by the Company, in a form satisfactory to the board, of all the
information required by the section 212 notice.
68.3 Where, on the basis of information obtained from a member in respect of a
share held by him, the Company issues a section 212 notice to another person, it
shall at the same time send a copy of the section 212 notice to the member, but
the accidental omission to do so, or the non-receipt by the member of the copy,
does not invalidate or otherwise affect the application of article 67.1.
68.4 For the purposes of this article 67:
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(a) a person, other than the member holding a share, is treated as appearing to
be interested in that share if the member has informed the Company that the
person is or may be interested, or if the Company (after taking account of
information obtained from the member or, pursuant to a section 212 notice,
from anyone else) knows or has reasonable cause to believe that the person
is or may be so interested;
(b) INTERESTED is construed as it is for the purpose of section 212 of the Act;
(c) reference to a person having failed to give the Company the information
required by a section 212 notice, or being in default in supplying such
information, includes (a) reference to his having failed or refused to give
all or any part of it, and (b) reference to his having given information
which he knows to be false in a material particular or having recklessly
given information which is false in a material particular;
(d) the PRESCRIBED PERIOD means 14 days;
(e) an EXCEPTED TRANSFER means, in relation to shares held by a member:
(i) a transfer pursuant to acceptance of a takeover offer for the Company
(within the meaning of section 428(1) of the Act); or
(ii) a transfer in consequence of a sale made through a recognised
investment exchange (as defined in the Financial Services Act 1986) or
another stock exchange outside the United Kingdom on which shares in
the capital of the Company are normally traded; or
(iii)a transfer which is shown to the satisfaction of the board to be made
in consequence of a sale of the whole of the beneficial interest in
the shares to a person who is unconnected with the member and with any
other person appearing to be interested in the shares.
67.5(a) Where any person appearing to be interested in shares has been duly
served with a section 212 notice and the shares in which he appears to be
interested are held by an Approved Depositary, the provisions of article
67.1 shall be treated as applying only to those shares held by the Approved
Depositary in which such person appears to be interested and not (insofar
as such person's apparent interest is concerned) to any other shares held
by the Approved Depositary.
(b) Subject to article 67.5(a), where the member on which a section 212 notice
is duly served is an Approved Depositary acting in its capacity as such,
the obligations of the Approved Depositary as a member shall be limited to
disclosing to the Company such information relating to any person appearing
to be interested in the shares held by it as has been recorded by it
pursuant to the arrangements entered into by the Company or approved by the
board pursuant to which it was appointed as an Approved Depositary.
67.6 The provisions of this article are in addition and without prejudice to the
provisions of the Acts.
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PROTECTION OF LICENCES UNDER THE BROADCASTING ACT 1990 AND THE
TELECOMMUNICATIONS ACT 1984
68.1 In this article 68:
(a) LICENCE means any licence under the Broadcasting Act 1990 and/or the
Telecommunications Act 1984 (and any statutory modifications or
reenactments of the same together with all orders made thereunder for the
time being in force) awarded or granted to the Company or any of its
subsidiary undertakings (as the case may be) and any other licence or
permit used or intended to be used which in any case is material to its
business, granted by any other authority or body or any governmental
department under any other legislation or regulations in force for the time
being in any jurisdiction;
(b) NOTIFIABLE SITUATION means circumstances in which the holding of shares of
any class of any member when either taken alone or when taken together with
the holding of shares by one or more other members is or may be, in the
reasonable opinion of the board, prejudicial to:
(i) the grant of any Licence or the renewal or extension of any Licence
for which an application is or is intended to be made; or
(ii) the continued holding of any Licence;
(c) RELEVANT PERSON means any member whose holding of shares in the Company
when either taken alone or when taken together with the holding of shares
by one or more other members gives rise to a Notifiable Situation;
(d) RELEVANT SHARES means the shares of a Relevant Person which are, or which
in the reasonable opinion of the board may be, causing a Notifiable
Situation to occur in relation to that Relevant Person; and
(e) REQUIRED DISPOSAL means a disposal or disposals of such a number of
Relevant Shares as will cause, or which in the reasonable opinion of the
board will cause, a Relevant Person to cease to be a Relevant Person and
will not cause any other person to be a Relevant Person and/or the holding
of shares by a Relevant Person to cease to give rise to a Notifiable
Situation, not being a disposal to another Relevant Person.
68.2 The board may at any time by notice require from a member such information
(to the extent that information is required in relation to a person other than
such member, so far as such information lies within the knowledge of such
member) supported by a declaration and by such other evidence (if any) in
support as the board may require, for the purposes of determining whether such
member or any person who has an interest in shares held by such member or an
associate of any such member or person or any person in which any such member or
person is a participant with more than a five per cent. interest has an interest
in any shares of the Company which, in the reasonable opinion of the board, may
be relevant to the determination of whether a Notifiable Situation exists in
relation to such member or person and the member or person shall supply the
information and evidence so specified to the board as soon as reasonably
practicable but, in any event, within seven days of receipt of such notice. If
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such information and evidence is not furnished within the time prescribed by the
notice or the information and evidence provided is, in the opinion of the board,
unsatisfactory for the purposes of so determining, the board may serve on such
member a further notice calling upon him, within seven days after the service of
such further notice, to furnish the board with such information and evidence or
further information and evidence as shall (in their opinion) enable them to so
determine.
68.3 The board may, following such consultation with and the provision of such
information to the Independent Television Commission, the Department of Trade
and Industry, the Office of Telecommunications and/or such other authorities as
the board considers appropriate, notify any member that his holding of Relevant
Shares gives rise to a Notifiable Situation.
68.4 Any notice served pursuant to article 68.3 shall contain a statement by the
board of the reasons for the giving of such notice and include any communication
from the relevant authorities in support of those reasons. The notice shall set
out the restrictions that may apply in relation to the Relevant Shares of the
member on whom such notice is served as referred to in article 68.5.
68.5 If on the expiry of 14 days after service of notice pursuant to articles
68.2 or 68.3, the member upon whom the notice has been served shall have failed
to supply the required information or the Notifiable Situation still remains, as
the case may be, the board may treat such number of the Relevant Shares held by
such member as may be necessary to end the Notifiable Situation as non-voting
shares, by removal of the right to vote, but all other rights attaching to the
Relevant Shares (in particular the right to receive dividends and receive notice
of and attend all general meetings of the Company) shall not be affected.
68.6 If, following action taken by the board pursuant to article 68.5, a
Notifiable Situation nevertheless still remains, the board may serve a written
notice (a DISPOSAL NOTICE) on the member concerned calling for a Required
Disposal of the Relevant Shares of such member or of such lesser number of
Relevant Shares as shall be specified in the said notice, to be made within such
period as the board considers reasonable. Where the member concerned is a member
of the Liberty Group or the Microsoft Group, a copy of the Disposal Notice shall
be served also on a member of the other group. The board may extend the period
in which a Disposal Notice is required to be complied with and may withdraw a
Disposal Notice (whether before or after the expiration of the period referred
to) in their absolute discretion if it appears to it that a Notifiable Situation
has ceased to exist in relation to the Relevant Shares concerned. After the
giving of a Disposal Notice, and save for the purpose of a Required Disposal
under this article 68.6 or article 68.7, no transfer of any of the Relevant
Shares concerned may be registered until either the Disposal Notice is withdrawn
or a Required Disposal has been made to the satisfaction of the board and
registered. Where more than one holder (treating joint holders as a single
holder) is required to dispose of shares pursuant to a Disposal Notice, the said
Notice shall specify the number of shares to be disposed of by each such holder
(which shall be in the discretion of the directors and need not be pro rata
amongst the members being called upon to dispose of shares).
68.7 If a Disposal Notice given under article 68.6 has not been complied with in
all respects to the satisfaction of the board by the end of the period (as
extended if applicable) specified in the Disposal Notice and has not been
withdrawn, the board
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shall, so far as it is able, within thirty days, make a Required Disposal (or
procure that a Required Disposal is made) of the Relevant Shares concerned and
shall give notice of the disposal to those persons on whom the Disposal Notice
is served. The holder(s) of the shares duly disposed of shall be deemed
irrevocably and unconditionally to have authorised the board to make such
Required Disposal. The manner, timing and terms of any such Required Disposal
made or sought to be made by the board (including, but not limited to the price
or prices at which the same is made and the extent to which assurance is
obtained that no transferee would become a Relevant Person) shall be such as the
board determine (provided that the board shall use its reasonable efforts to
obtain the best price reasonably obtainable in the circumstances), based on
advice from bankers, brokers, or other persons as the board considers
appropriate consulted by it for the purpose, to be reasonably practicable having
regard to all the circumstances, including, but not limited to, the number of
shares to be disposed of and the requirement that the disposal be made within
thirty days from expiry of the Disposal Notice; and the board shall not be
liable, and any such persons giving any such advice to the board shall not be
liable, to any person (whether or not a Relevant Person) for any of the
consequences of reliance on such advice (including, without limitation, for
failing to obtain the best price reasonably obtainable in the circumstances
provided the board acted in good faith throughout the relevant period), provided
always that, where the registered holder(s) of the Relevant Shares concerned is
a member of the Liberty Group or the Microsoft Group, the board shall use its
reasonable endeavors to give the members of each of the other such groups the
first right to purchase such Relevant Shares (subject to such member itself not
being a Relevant Person or to such purchase itself not giving rise to a
Notifiable Situation) in accordance with such arrangements as may then be in
place between the members of the Liberty Group and the Microsoft Group in
relation to their holdings of shares of the Company and as may have been
notified to the Company by any member of the Liberty Group and/or the Microsoft
Group and the preceding provisions of this article 68.7 shall be amended
accordingly to take account of such arrangements but so that the board shall not
be liable to any member of the Liberty Group or of the Microsoft Group for
failing to ensure that any such arrangements are complied with fully or at all.
68.8 For the purpose of effecting any Required Disposal, the board may authorise
in writing any officer or employee of the Company to execute any necessary
transfer on behalf of any holder and may enter the name of the transferee in the
register in respect of the transferred shares notwithstanding the absence of any
share certificate and may issue a new certificate to the transferee and an
instrument of transfer executed by such person shall be as effective as if it
had been executed by the holder of the transferred shares and the title of the
transferee shall not be affected by any irregularity or invalidity in the
proceedings relating thereto. The net proceeds of the disposal shall be received
by the Company whose receipt shall be a good discharge for the purchase money,
and shall be paid (without any interest being payable in respect of it and after
deduction of any expenses incurred by the Company in the sale) to the former
holder (or in the case of joint holders, the first of them named in the
register) together with, if appropriate a new certificate in respect of the
balance of the Relevant Shares to which he is entitled upon surrender by him or
on his behalf of any certificate in respect of the Relevant Shares sold and
formerly held by him.
68.9 A holder of a Relevant Share on whom a Disposal Notice has been given under
(and complying with) article 68.6 shall not in respect of that share be
entitled, until such
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time as the Disposal Notice has been complied with to the satisfaction of the
board or withdrawn, to receive notice of or to attend or vote at any general
meeting of the Company or meeting of the holders of any class of share capital,
or to exercise any other right conferred by membership in relation to any such
meeting; and the rights to attend (whether in person or by representative or
proxy), to speak and to demand and vote on a poll which would have attached to
the Relevant Share had it not been a Relevant Share shall vest in the chairman
of any such meeting. The manner in which the chairman exercises or refrains from
exercising any such rights shall be entirely at his discretion. The chairman of
any such meeting shall be informed by the board of any share becoming or being
deemed to be a Relevant Share.
68.10 Save as otherwise provided in this article 68.10, the provisions of the
articles applying to the giving of notice of meetings to members shall apply to
the giving to a member of any notice required by this article 68. Any notice
required by this article 68 to be given to a member (or in the case of joint
holders, who is the person first named in the register) whose registered address
is not within the United Kingdom and who has not given to the Company an address
within the United Kingdom at which notices may be given to him, shall be deemed
validly served if it is sent through the post in a prepaid envelope addressed to
that person at the address (or if more than one, at one of the addresses) if
any, at which the board believes him to be resident or carrying on business or
to his last known address as shown on the register. The notice shall in such a
case be deemed to have been given on the day following that on which the
envelope containing the same is posted, unless it was sent by second class post
or there is only one class of post, in which case it shall be deemed to have
been given on the day next but one after it was posted, Proof that the envelope
was properly addressed prepaid and posted shall be conclusive evidence that the
notice was given.
68.11 Any resolution or determination of, or decision or exercise of any
discretion or power by, the board or any director or by the chairman of any
meeting under or pursuant to the provisions of this article 68 (including,
without prejudice to the generality of the foregoing, as to what constitutes
reasonable enquiry or as to the manner, timing and terms of any Required
Disposal made by the board under article 68.7) shall be final and conclusive;
and any disposal or transfer made, or other thing done, by or on behalf of, or
on the authority of, the board or any director pursuant to the foregoing
provisions of this article 68 shall be conclusive and binding on all persons
concerned and shall not be open to challenge, whether as to its validity or
otherwise on any ground whatsoever. The board shall not be required to give any
reasons for any decision, determination or declaration taken or made in
accordance with this article 68. The fact that the board has assumed that a
Notifiable Situation does not exist in relation to any member shall not affect
their discretion to subsequently determine that a Notifiable Situation does
exist in relation to such member.
APPOINTMENT, RETIREMENT AND REMOVAL OF DIRECTORS
NUMBER OF DIRECTORS
69. Unless and until otherwise decided by the Company by ordinary resolution the
number of directors shall be not less than two, and shall not be subject to any
maximum.
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POWER OF THE COMPANY TO APPOINT DIRECTORS
70. Subject to the articles and to the power of members of the Liberty Group and
the Microsoft Group to appoint directors pursuant to article 71, the Company may
by ordinary resolution (on which, for the avoidance of doubt, limited voting
shares will not carry the right to vote) appoint a person who is willing to act
to be a director, either to fill a vacancy or as an addition to the board, but
the total number of directors may not exceed any maximum number which may be
fixed in accordance with the articles.
POWER OF MEMBERS OF THE LIBERTY GROUP AND THE MICROSOFT GROUP TO APPOINT, REMOVE
AND REPLACE DIRECTORS
71.1 For so long as members of the Liberty Group hold not less than a Qualifying
Interest the members of the Liberty Group shall have the right to appoint three
persons, who are willing so to act, as directors and to remove and replace any
director so appointed by them. For so long as the members of the Liberty Group
hold not less than a Lesser Qualifying Interest the members of the Liberty Group
shall have the right to appoint two persons, who are willing so to act, as
directors and to remove and replace any directors so appointed by them.
71.2 For so long as members of the Microsoft Group hold not less than a
Qualifying Interest, the members of the Microsoft Group shall have the right to
appoint three persons, who are willing so to act, as directors and to remove and
replace any director so appointed by them. For so long as the members of the
Microsoft Group hold not less than a Lesser Qualifying Interest the members of
the Microsoft Group shall have the right to appoint two persons, who are willing
so to act, as directors and to remove and replace any directors so appointed by
them.
71.3 Any appointment, removal and/or replacement of a director pursuant to
article 71.1 or 71.2 shall be effected by notice to the Company signed by or on
behalf of a member of the Liberty Group or the Microsoft Group, as the case may
be. The notice shall be left at or sent by post or facsimile transmission to the
office or such other place designated by the board for the purpose. The
appointment or removal and/or replacement shall take effect immediately on
deposit of the notice in accordance with the articles or on such later date (if
any) specified in the notice.
71.4 On any vote or resolution of the Company to remove any director appointed
pursuant to or to amend article 71.1 or 71.2, the members of the Liberty Group
or the Microsoft Group (as appropriate) entitled to appoint, remove and/or
replace him or any director pursuant to article 71.1 or 71.2 as the case may be
shall have in aggregate twice the number of votes cast (on a show of hands or by
proxy) in favour of such vote or resolution by or on behalf of all the other
members.
POWER OF THE BOARD TO APPOINT DIRECTORS
72. Without prejudice to the power of the Company to appoint a person to be a
director pursuant to the articles and to the power of members of the Liberty
Group and the Microsoft Group to appoint directors pursuant to article 71, the
board may appoint a person who is willing to act as a director, either to fill a
vacancy or as an addition to the board. A director appointed in this way may
hold office only until the dissolution of the
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next annual general meeting after his appointment unless he is reappointed
during the meeting. He is not required, and is not taken into account in
determining the number of directors who are, to retire by rotation at the
meeting.
APPOINTMENT OF EXECUTIVE DIRECTORS
73. Subject to the Acts and to article 69, the board may appoint one or more of
its body to hold employment or executive office (including that of chief
executive officer or managing director) with the Company for such term (subject
to the Acts) and on any other conditions the board thinks fit. The board may
revoke or terminate an appointment, without prejudice to a claim for damages for
breach of contract.
INDEPENDENCE OF DIRECTORS
74. For so long as members of the Liberty Group hold not less than a Qualifying
Interest or for so long as members of the Microsoft Group hold not less than a
Qualifying Interest, such members of the Liberty Group or of the Microsoft
Group, as the case may be, shall each exercise their voting rights as members of
the Company, and shall each request that the Liberty Designated Directors or, as
the case may be, the Microsoft Designated Directors appointed by them exercise
their voting rights as members of the board (subject always to such Designated
Director's fiduciary and other duties as a director) to ensure that, to the
extent that they are able to do so through the exercise of their votes, the
majority of the directors are Independent Directors.
ELIGIBILITY OF NEW DIRECTORS
75.1 Subject to article 70 no person other than a director retiring (by rotation
or otherwise) may be appointed or reappointed a director at a general meeting
unless:
(a) he is recommended by the board; or
(b) not less than seven nor more than 42 days before the date fixed for the
meeting, notice has been given to the Company by a member (other than the
person to be proposed) qualified to vote at the meeting of the intention to
propose that person for appointment or reappointment. The notice shall (a)
state the particulars which would, if the proposed director were appointed
or reappointed, be required to be included in the Company's register of
directors, (b) be accompanied by notice given by the proposed director of
his willingness to be appointed or reappointed, and (c) be lodged at the
office.
75.2 A director need not be a member.
VOTING ON RESOLUTION FOR APPOINTMENT
76. A resolution for the appointment of two or more persons as directors by a
single resolution is void unless an ordinary resolution that the resolution for
appointment is proposed in this way has first been agreed to by the meeting
without a vote being given against it.
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RETIREMENT AT ANNUAL GENERAL MEETING
77. At each annual general meeting all of the directors shall retire from
office.
POSITION OF RETIRING DIRECTOR
78. A director who retires at an annual general meeting may, if willing to act,
be reappointed. If he is not reappointed or deemed reappointed, he may retain
office until the meeting (or, in the case of a Liberty Designated Director, a
member of the Liberty Group or, in the case of a Microsoft Designated Director,
a member of the Microsoft Group) appoints someone in his place or, if it does
not do so, until the end of the meeting.
DEEMED REAPPOINTMENT
79. At an annual general meeting at which a director retires (other than in the
case of a Liberty Designated Director or a Microsoft Designated Director) the
Company or (in the case of a Liberty Designated Director) a member of the
Liberty Group or (in the case of a Microsoft Designated Director) a member of
the Microsoft Group may fill the vacancy and, if it does not do so, the retiring
director is, if willing, deemed reappointed unless (other than in the case of a
Liberty Designated Director or a Microsoft Designated Director) it is expressly
resolved not to fill the vacancy or (in the case of a Liberty Designated
Director) a member of the Liberty Group notifies the Company of the removal of
such director as a Liberty Designated Director pursuant to article 71.1 or (in
the case of a Microsoft Designated Director) a member of the Microsoft Group
notifies the Company of the removal of such director as a Microsoft Designated
Director pursuant to article 71.2 or (other than in the case of a Liberty
Designated Director or a Microsoft Designated Director) a resolution for the
reappointment of the director is put to the meeting and lost.
NO RETIREMENT ON ACCOUNT OF AGE
80. No person is incapable of being appointed a director by reason of his having
reached the age of 70 or another age. Special notice is not required in
connection with the appointment or the approval of the appointment of such
person. No director is required to vacate his office because he has reached the
age of 70 or another age and section 293 of the Act does not apply to the
Company. Where a general meeting is convened at which, to the knowledge of the
board, a director is to be proposed for appointment or reappointment who is at
the date of the meeting 70 or more, the board shall give notice of his age in
the notice convening the meeting or in a document accompanying the notice, but
the accidental omission to do so does not invalidate proceedings or an
appointment or reappointment of that director at that meeting.
REMOVAL BY ORDINARY RESOLUTION
81. Subject to article 71, in addition to any power of removal conferred by the
Acts, the Company may by ordinary resolution (on which, for the avoidance of
doubt, limited voting shares will not carry the right to vote) remove a director
before the expiration of his period of office (without prejudice to a claim for
damages for breach of contract) and may (subject to the articles) by ordinary
resolution appoint another person who is willing to act to be a director in his
place. A person appointed in this way is treated, for
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the purposes of determining the time at which he or another director is to
retire, as if he had become a director on the date on which the person in whose
place he is appointed was last appointed or reappointed a director.
VACATION OF OFFICE BY DIRECTOR
82.1 Without prejudice to the provisions for retirement contained in the
articles, the office of a director is vacated if:
(a) he resigns by notice delivered to the secretary at the office or tendered
at a board meeting;
(b) he ceases to be a director by virtue of a provision of the Acts, is removed
from office pursuant to the articles or becomes prohibited by law from
being a director;
(c) he becomes bankrupt, has an interim receiving order made against him, makes
an arrangement or compounds with his creditors generally or applies to the
court for an interim order under section 253 of the Insolvency Act 1986 in
connection with a voluntary arrangement under that Act;
(d) an order is made by a court of competent jurisdiction on the ground
(however formulated) of mental disorder for his detention or for the
appointment of a guardian, receiver, curator bonis or other person to
exercise powers with respect to his affairs or he is admitted to hospital
in pursuance of an application for admission for treatment under the Mental
Health Act 1983 or, in Scotland, under the Mental Health (Scotland) Act
1984 and the board resolves that his office be vacated;
(e) both he and his alternate director appointed pursuant to the provisions of
the articles (if any) are absent, without the permission of the board, from
board meetings for six consecutive months and the board resolves that his
office be vacated;
(f) (other than in the case of a Liberty Designated Director or a Microsoft
Designated Director) he is removed from office by notice addressed to him
at his last-known address and signed by all his co-directors (without
prejudice to a claim for damages for breach of contract); or
(g) (in the case of a Liberty Designated Director or a Microsoft Designated
Director) he is removed as a director pursuant to article 71.1 or 71.2 or
71.3 or 71.4 or 71.5 as the case may be.
82.2 A resolution of the board declaring a director to have vacated office under
the terms of article 82.1 is conclusive as to the fact and grounds of vacation
stated in the resolution.
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ALTERNATE DIRECTORS
APPOINTMENT
83.1 A director (other than an alternate director) may by notice delivered to
the secretary at the office, or in any other manner approved by the board,
appoint as his alternate director:
(a) another director, or
(b) another person approved by the board (or, in the case of a Liberty
Designated Director, nominated by a member of the Liberty Group or, in the
case of the Microsoft Designated Director, nominated by a member of the
Microsoft Group) and willing to act.
83.2 No appointment of an alternate director who is not already a director is
effective until his consent to act as a director in the form prescribed by the
Acts has been received at the office.
83.3 An alternate director need not be a member and is not counted in reckoning
the number of directors for the purpose of article 70.
REVOCATION OF APPOINTMENT
84. A director may by notice delivered to the secretary at the office revoke the
appointment of his alternate director and, subject to the provisions of article
84, appoint another person in his place. If a director ceases to hold the office
of director or if he dies, the appointment of his alternate director
automatically ceases. If a director retires but is reappointed at the meeting at
which his retirement takes effect, a valid appointment of an alternate director
which was in force immediately before his retirement continues to operate after
his reappointment as if he has not retired. The appointment of an alternate
director ceases on the happening of an event which, if he were a director
otherwise appointed, would cause him to vacate office.
PARTICIPATION IN BOARD MEETINGS
85. An alternate director is, if he gives the Company an address in the United
Kingdom or the United States of America at which notices may be served on him,
entitled to receive notice of all meetings of the board and all committees of
the board of which his appointor is a member and, in the absence from those
meetings of his appointor, to attend and vote at the meetings and to exercise
all the powers, rights, duties and authorities of his appointor. A director
acting as alternate director has a separate vote at meetings of the board and
committees of the board for each director for whom he acts as alternate director
but he counts as only one for the purpose of determining whether a quorum is
present.
RESPONSIBILITY
86. A person acting as an alternate director is an officer of the Company, is
alone responsible to the Company for his acts and defaults, and is not deemed to
be the agent of his appointor.
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REMUNERATION, EXPENSES AND PENSIONS
DIRECTORS' FEES
87. Unless otherwise decided by the Company by ordinary resolution, the Company
shall pay to the directors (but not alternate directors) for their services as
directors such amount of aggregate fees as the board decides (not exceeding
(pound)500,000 per annum or such larger amount as the Company may by ordinary
resolution decide). The aggregate fees shall be divided among the directors in
such proportions as the board decides or, if no decision is made, equally. A fee
payable to a director pursuant to this article is distinct from any salary,
remuneration or other amount payable to him pursuant to other provisions of the
articles and accrues from day to day.
ADDITIONAL REMUNERATION
88. A director who, at the request of the board, goes or resides abroad, makes a
special journey or performs a special service on behalf of the Company may be
paid such reasonable additional remuneration (whether by way of salary,
percentage of profits or otherwise) and expenses as the board may decide.
EXPENSES
89. A director is entitled to be repaid all reasonable traveling, hotel and
other expenses properly incurred by him in the performance of his duties as
director, including expenses incurred in attending meetings of the board or of
committees of the board or general meetings or separate meetings of the holders
of a class of shares or debentures.
REMUNERATION AND EXPENSES OF ALTERNATE DIRECTORS
90. An alternate director is not entitled to a fee from the Company for his
services as an alternate director. The fee payable to an alternate director is
payable out of the fee payable to his appointor and consists of such portion (if
any) of the fee as he agrees with his appointor. The Company shall, however,
repay to an alternate director expenses incurred by him in the performance of
his duties if the Company would have been required to repay the expenses to him
under article 89 had he been a director.
DIRECTORS' PENSIONS AND OTHER BENEFITS
91.1 The board may exercise all the powers of the Company to provide pensions or
other retirement or superannuation benefits and to provide death or disability
benefits or other allowances or gratuities (by insurance or otherwise) for a
person who is or has at any time been a director of (i) the Company, or (ii) a
company which is or was a subsidiary undertaking of the Company, or (iii) a
company which is or was allied to or associated with the Company or a subsidiary
undertaking of the Company, or (iv) a predecessor in business of the Company or
of a subsidiary undertaking of the Company (and for any member of his family,
including a spouse or former spouse, or a person who is or was dependent on
him). For this purpose the board may establish, maintain, subscribe and
contribute to any scheme, trust or fund and pay premiums. The board may arrange
for this to be done by the Company alone or in conjunction with another person.
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91.2 A director or former director is entitled to receive and retain for his own
benefit a pension or other benefit provided under article 91.1 and is not
obliged to account for it to the Company.
REMUNERATION OF EXECUTIVE DIRECTOR
92. The salary or remuneration of a director appointed to hold employment or
executive office in accordance with the articles may be a fixed sum of money, or
wholly or in part governed by business done or profits made, or as otherwise
decided by the board, and may be in addition to or instead of a fee payable to
him for his services as director pursuant to the articles.
POWERS AND DUTIES OF THE BOARD
POWERS OF THE BOARD
93. Subject to the Acts, the memorandum of association of the Company and the
articles and to directions given by special resolution of the Company, the
business of the Company is managed by the board which may exercise all the
powers of the Company whether relating to the management of the business or not.
No alteration of the memorandum of association or of the articles and no
direction given by the Company shall invalidate a prior act of the board which
would have been valid if the alteration had not been made or the direction had
not been given. The provisions of the articles giving specific powers to the
board do not limit the general powers given by this article.
POWERS OF DIRECTORS BEING LESS THAN MINIMUM REQUIRED NUMBER
94. Subject to article 71, if the number of directors is less than the minimum
prescribed by the articles or decided by the Company by ordinary resolution, the
remaining director or directors may act only for the purposes of appointing an
additional director or directors to make up that minimum or convening a general
meeting of the Company for the purpose of making such appointment. If no
director or directors is or are able or willing to act, two members may convene
a general meeting for the purpose of appointing directors. An additional
director appointed in this way holds office (subject to the articles) only until
the dissolution of the next annual general meeting after his appointment unless
he is reappointed during the meeting.
POWERS OF EXECUTIVE DIRECTORS
95. The board may delegate to a director holding executive office (including a
chief executive officer or managing director) any of its powers, authorities and
discretions for such time and on such terms and conditions as it thinks fit. In
particular, the board may grant the power to sub-delegate, and may retain or
exclude the right of the board to exercise the delegated powers, authorities or
discretions collaterally with the director. The board may at any time revoke the
delegation or alter its terms and conditions.
DELEGATION TO COMMITTEES
96. The board may delegate any of its powers, authorities and discretions for
such time and on such terms and conditions as it thinks fit to a committee
consisting of one or more directors (save that in relation to any committee, at
least one member must be a
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Liberty Designated Director, provided there is at the relevant time such a
director holding office as such, and one member must be a Microsoft Designated
Director, provided there is at the relevant time such a director holding office
as such), and (if thought fit) one or more other persons, but only if a majority
of the members of the committee are directors or alternate directors. Any such
committee shall be chaired by an Independent Director and shall comprise a
majority of members independent of Liberty and Microsoft. No resolution of a
committee is effective unless a majority of those present when it is passed are
directors or alternate directors. In particular, the board may grant the power
to sub-delegate, and may retain or exclude the right of the board to exercise
the delegated powers, authorities or discretions collaterally with the
committee. The board may at any time revoke the delegation or alter its terms
and conditions or discharge the committee in whole or in part. Where a provision
of the articles refers to the exercise of a power, authority or discretion by
the board and that power, authority or discretion has been delegated by the
board to a committee, the provision shall be construed as permitting the
exercise of the power, authority or discretion by the committee. Provided that
the right of a Liberty Designated Director and/or a Microsoft Designated
Director to attend such committee meetings may be waived on a general or
specific basis by Liberty or by a Liberty Designated Director (in respect of all
Liberty Designated Directors) or by Microsoft or a Microsoft Designated Director
(in respect of all Microsoft Designated Directors), as the case may be.
LOCAL MANAGEMENT
97. The board may establish local or divisional boards or agencies for managing
the affairs of the Company in a specified locality, either in the United Kingdom
or elsewhere, and may appoint persons to be members of a local or divisional
board or agency, and may fix their remuneration. The board may delegate to a
local or divisional board or agency any of its powers, authorities and
discretions for such time and on such terms and conditions as it thinks fit. In
particular, the board may grant the power to sub-delegate, may retain or exclude
the right of the board to exercise the delegated powers, authorities or
discretions collaterally with the local or divisional board or agency and may
authorise the members of a local or divisional board or agency (or any of them)
to fill a vacancy or to act despite a vacancy. The board may at any time revoke
or alter the terms and conditions of the appointment or delegation. Subject to
terms and conditions imposed by the board, the proceedings of a local or
divisional board or agency with two or more members are governed by those
articles that regulate the proceedings of the board, so far as applicable.
POWER OF ATTORNEY
98. The board may by power of attorney or otherwise appoint a person to be the
agent of the Company and may delegate to that person any of its powers,
authorities and discretions for such purposes, for such time and on such terms
and conditions (including as to remuneration) as it thinks fit. In particular,
the board may grant the power to sub-delegate and may retain or exclude the
right of the board to exercise the delegated powers, authorities or discretions
collaterally with the agent. The board may at any time revoke or alter the terms
and conditions of the appointment or delegation.
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ASSOCIATE DIRECTORS
99. The board may appoint a person (not being a director) to an office or
employment having a designation or title including the word director or attach
to an existing office or employment that designation or title and may terminate
the appointment or use of that designation or title. The inclusion of the word
director in the designation or title of an office or employment does not imply
that the person is, or is deemed to be, or is empowered to act as, a director
for any of the purposes of the Acts or the articles.
EXERCISE OF VOTING POWERS
100. Subject to article 103, the board may exercise or cause to be exercised the
voting powers conferred by shares in the capital of another company held or
owned by the Company, or a power of appointment to be exercised by the Company,
in any manner it thinks fit (including the exercise of the voting power or power
of appointment in favour of the appointment of a director as an officer or
employee of that company or in favour of the payment of remuneration to the
officers or employees of that company).
PROVISION FOR EMPLOYEES
101. The board may exercise the powers conferred on the Company by the Acts to
make provision for the benefit of a person employed or formerly employed by the
Company or any of its subsidiary undertakings (or any member of his family,
including a spouse or former spouse, or any person who is or was dependent on
him) in connection with the cessation or the transfer to a person of the whole
or part of the undertaking of the Company or the subsidiary undertaking.
REGISTERS
102. Subject to the Acts, the board may exercise the powers conferred on the
Company with regard to the keeping of an overseas, local or other register and
may make and vary regulations as it thinks fit concerning the keeping of a
register.
BORROWING POWERS
103.1 Subject to the following provisions of this article 103, the board may
exercise all the powers of the Company to borrow money and to mortgage or charge
all or part of the undertaking, property and assets (present or future) and
uncalled capital of the Company and, subject to the Acts, to issue debentures
and other securities, whether outright or as collateral security for a debt,
liability or obligation of the Company or of a third party.
103.2 The board shall restrict the borrowings of the Company and shall exercise
all voting and other rights or powers of control exercisable by the Company in
relation to its subsidiary undertakings so as to procure (as regards subsidiary
undertakings, to the extent that it can procure by such exercise) that the
aggregate principal amount outstanding in respect of moneys borrowed by the
group does not at any time, without the previous sanction of an ordinary
resolution of the Company, exceed a sum equal to the greater of:
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(a) (pound)6,000,000,000; and
(b) five times the adjusted capital and reserves.
103.3 In this article 103:
(a) ADJUSTED CAPITAL AND RESERVES means a sum equal to the aggregate of:
(i) the amount paid up on the allotted or issued share capital of the
Company; and
(ii) the amount standing to the credit or debit of the consolidated
reserves;
all as shown in the relevant balance sheet but after:
(aa) making appropriate adjustments in respect of:
(1) a variation in the amounts referred to in article 102.3(a)
and (b) since the date of the relevant balance sheet; for
this purpose (aa) if a proposed allotment of shares by the
Company for cash has been underwritten, those shares are
deemed to have been allotted and the amount (including a
premium) of the subscription moneys payable in respect of
those shares (not being moneys payable later than six months
after the date of allotment) are deemed to have been paid up
to the extent so underwritten on the date on which the issue
of those shares was underwritten (or, if the underwriting
was conditional, the date on which it became unconditional),
and (bb) where the Company is under an obligation (whether
immediately or at a future date) to issue shares on
conversion (however effected) of other securities of a group
undertaking and the obligation to effect conversion is not
conditional on any act, omission or event (other than lapse
of time), the share capital of the Company and the
consolidated reserves shall be calculated as if the
securities had been converted;
(2) an undertaking which has become a group undertaking since
the date of the relevant balance sheet;
(3) an undertaking which has ceased to be a group undertaking
since the date of the relevant balance sheet;
(bb) excluding (so far as not already excluded) amounts attributable
to minority interests;
(cc) deducting (so far as not already deducted):
(A) sums equivalent to the book values of goodwill and other
intangible assets shown in the relevant balance sheet (as
adjusted pursuant to the preceding provisions of this
article 102) but adding back the amount of goodwill that
would have remained on the relevant balance sheet (as
adjusted) if all goodwill arising on acquisitions of group
undertakings after 22 November 1994 and
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which has been written off against reserves in accordance
with generally accepted accounting practice in the United
Kingdom had been carried on the balance sheet as an asset
and amortised on a straight-line basis over 20 years (or
such longer period, as decided by the Company, as may be in
accordance with generally accepted accounting practice in
the United Kingdom), this amount to be certified by the
auditors; and
(B) the amount of a distribution declared, recommended, paid or
made by a group undertaking to a person other than a group
undertaking out of profits accrued up to and including the
date of, but not provided for in, the relevant balance
sheet; and
(C) making such other adjustments (if any) as the auditors
consider appropriate or necessary to reflect changes in
circumstances since the date of the relevant balance sheet;
(b) EXTERNAL INTEREST means, in relation to a group undertaking that is not
wholly owned, that part of the issued and paid-up equity share capital of
the group undertaking that is not beneficially owned, directly or
indirectly, by another group undertaking;
(c) EXTERNAL INTEREST PERCENTAGE means, in relation to a group undertaking that
is not wholly owned, the percentage that the external interest forms of the
whole of the issued and paid-up equity share capital of the group
undertaking;
(d) GROUP means (aa) the Company, and (bb) all undertakings which are included
in the group accounts in which the relevant balance sheet is comprised and
which would be so included if group accounts were prepared at the relevant
time (and as if that time were the end of the Company's financial year),
and (cc) all undertakings which are not included in the group accounts in
which the relevant balance sheet is comprised but which would be so
included if group accounts were prepared at the relevant time (and as if
that time were the end of the Company's financial year);
(e) GROUP UNDERTAKING means the Company or another undertaking in the group;
(f) MONEYS BORROWED include the following:
(i) the nominal amount of and the amount of any premium paid in respect
of any allotted or issued share capital (not being equity share
capital) of a group undertaking not beneficially owned, directly or
indirectly, by another group undertaking;
(ii) the principal amount of any loan capital (whether secured or
unsecured) of a group undertaking not beneficially owned, directly
or indirectly, by another group undertaking;
(iii) the principal amount of any borrowings by a person other than a
group undertaking, the repayment of which is the subject of a
guarantee or
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indemnity by a group undertaking or is secured on the assets of a
group undertaking;
(iv) the outstanding amount raised by acceptances under an acceptance
credit opened on behalf of and in favour of a group undertaking by
a bank or accepting house (except for acceptances of, or acceptance
credits in relation to, trade bills for purchases of goods or
services in the ordinary course of business and outstanding for six
months or less);
(v) a fixed or minimum premium payable on repayment or redemption of
borrowings that constitute moneys borrowed for the purposes of this
article 103; and
(vi) amounts raised under a transaction (including, without limitation,
forward sale or purchase agreements and outstanding obligations
under finance leases and hire purchase contracts classified as
finance leases, but excluding operating leases (within the meanings
given to those terms by Statement of Standard Accounting Practice
21)) having the commercial effect of borrowings entered into to
enable the finance of operations or capital requirements;
but exclude:
(vii) borrowings by one group undertaking from another, including the
principal amount of any loan capital (whether secured or unsecured)
and the nominal amount of any allotted or issued share capital (not
being equity share capital) of a group undertaking beneficially
owned, directly or indirectly, by another group undertaking, except
that, where the group undertaking from which such borrowings are
made is not wholly owned, a percentage of the borrowings equal to
the external interest percentage are not excluded;
(viii) borrowings made for the purpose of, and applied within six months
of being made in, repaying the whole or part of borrowings that
constitute moneys borrowed for the purposes of this article 104;
(ix) borrowings for the purpose of financing a contract to the extent
that part of the price receivable under the contract is guaranteed
or insured by the Export Credit Guarantee Department of the
Department of Trade and Industry or by another institution
fulfilling a similar function;
(x) where a group undertaking is not wholly owned, a percentage of its
borrowings that constitute moneys borrowed for the purposes of this
article 104 equal to the external interest percentage;
(xi) an amount equal to the borrowings of an undertaking outstanding
immediately before and repaid within 90 days after it becomes a
group undertaking;
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(xii) the amount of moneys borrowed which are for the time being
deposited with a governmental authority in any part of the world in
connection with import deposits or a similar governmental scheme to
the extent that the group undertaking making the deposit retains
its interest in the deposit;
(xiii) a sum advanced or paid to a group undertaking (or its agents or
nominees) by a customer of a group undertaking as an unexpended
customer receipt or progress payment pursuant to a contract between
the customer and a group undertaking; and
(xiv) amounts treated as amounts due to trade creditors in the
consolidated group accounts of the Company in which the relevant
balance sheet is comprised;
and deducting:
(xv) an amount equal to the aggregate outstanding of:
(1) all cash deposits or credit balances on a current account of a
group undertaking with a bank (not itself being a group
undertaking) except for those held by banks as collateral for
borrowings;
(2) the realisable value of certificates of deposit and securities of
governments and companies; and
(3) other readily realisable deposits or credit balances (whether
made with a bank or otherwise);
in each case beneficially owned, directly or indirectly, by a group
undertaking, but excluding (aa) in the case of any such items
beneficially owned, directly or indirectly, by a group undertaking
that is not wholly owned, a percentage of those items equal to the
external interest percentage and (bb) any sum advanced or paid to a
group undertaking (or its agents or nominees) by a customer of a group
undertaking as an unexpended customer receipt or progress payment
pursuant to a contract between the customer and a group undertaking;
(g) RELEVANT BALANCE SHEET means the consolidated balance sheet dealing with
the state of affairs of the Company and its subsidiary undertakings
comprised in the latest group accounts prepared and approved by the board
and on which the auditors have made their report pursuant to the Acts; and
(h) WHOLLY OWNED means, in relation to a group undertaking, that it has no
member that is not itself a group undertaking or a person acting on behalf
of a group undertaking.
103.4 When the amount of moneys borrowed to be taken into account for the
purposes of this article 103 on a particular day is being ascertained, moneys
denominated or repayable in a currency other than sterling shall be converted
for the purpose of calculating the sterling equivalent either:
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(a) at the rate of exchange specified in a forward purchase contract, currency
option, back-to-back loan, swap or other arrangement taken out or entered
into to reduce the risk associated with fluctuations in rates of exchange
in respect of repayment of those moneys (a HEDGING AGREEMENT); or
(b) if repayment of those moneys has not been covered by a hedging agreement,
at the more favourable to the Company of:
(i) the rate of exchange used for the conversion of that currency in the
relevant balance sheet, or
(ii) if no rate was used, the middle-market rate of exchange quoted by
Barclays Bank PLC at the close of business in London on the date of
the relevant balance sheet, or
(iii) the middle-market rate of exchange quoted by Barclays Bank PLC at the
close of business in London on the business day immediately preceding
the day on which the calculation falls to be made.
103.5 A report or certificate of the auditors as to the amount of the adjusted
total of capital and reserves or the aggregate amount of moneys borrowed for the
purposes of this article 103 is conclusive and binding on all concerned.
Nevertheless the board may at any time act in reliance on a bona fide estimate
of the amount of the adjusted total of capital and reserves or the aggregate
amount of moneys borrowed and if in consequence the limit on moneys borrowed set
out in this article 103 is inadvertently exceeded, the amount of moneys borrowed
equal to the excess may be disregarded for 90 days after the date on which by
reason of a determination of the auditors or otherwise the board becomes aware
that this situation has or may have arisen.
103.6 No debt incurred or security given in respect of moneys borrowed in excess
of the limit imposed by this article 103 is invalid or ineffectual except where
express notice that the limit has been or will be exceeded has been given to the
lender or recipient of the security at the time when the debt is incurred or
security given. No lender or other person dealing with the Company is concerned
to see or enquire whether the limit is observed.
REGISTER OF CHARGES
104. The Company shall keep a register of charges in accordance with the Acts
and the fee to be paid by a person other than a creditor or member for each
inspection of the register of charges is the maximum sum prescribed by the Acts
or, failing which, decided by the board.
DIRECTORS' INTERESTS
105.1 Subject to the Acts and article 105.2, a director, notwithstanding his
office:
(a) may enter into or otherwise be interested in a contract, arrangement,
transaction or proposal with the Company or in which the Company is
otherwise interested either in connection with his tenure of an office or
place of profit or as seller, buyer or otherwise;
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(b) may hold another office or place of profit with the Company (except that of
auditor or auditor of a subsidiary of the Company) in conjunction with the
office of director and may act by himself or through his firm in a
professional capacity to the Company, and in that case on such terms as to
remuneration and otherwise as the board may decide either in addition to or
instead of remuneration provided for by another article;
(c) may be a director or other officer of, or employed by, or a party to a
contract, transaction, arrangement or proposal with or otherwise interested
in, a company promoted by the Company or in which the Company is otherwise
interested or as regards which the Company has a power of appointment; and
(d) is not liable to account to the Company for a profit, remuneration or other
benefit realised by such office, employment, contract, arrangement,
transaction or proposal and no such contract, arrangement, transaction or
proposal is avoided on the grounds of any such interest or benefit.
105.2 A director who, to his knowledge, is in any way (directly or indirectly)
interested in a contract, arrangement, transaction or proposal with the Company
shall declare the nature of his interest at the meeting of the board at which
the question of entering into the contract, arrangement, transaction or proposal
is first considered, if he knows his interest then exists or, in any other case,
at the first meeting of the board after he knows that he is or has become
interested. For the purposes of this article 105:
(a) a general notice given to the board by a director that he is to be regarded
as having an interest (of the nature and extent specified in the notice) in
a contract, transaction, arrangement or proposal in which a specified
person or class of persons is interested is a sufficient disclosure under
this article 105 in relation to that contract, transaction, arrangement or
proposal; and
(b) an interest of which a director has no knowledge and of which it is
unreasonable to expect him to have knowledge is not treated as his
interest.
105.3 Except as provided in this article 105, a director may not vote on a
resolution of the board or of a committee of the board concerning a contract,
arrangement, transaction or proposal to which the Company is or is to be a party
and in which he is or is to be, to his knowledge, (together with any interest of
any person connected with him) materially interested (otherwise than by virtue
of his interest in shares or debentures or other securities of or otherwise in
or through the Company), but this prohibition does not apply to a resolution
concerning any of the following matters:
(a) the giving to him of a guarantee, security or indemnity in respect of money
lent or obligations incurred by him or any other person at the request of
or for the benefit of the Company or any of its subsidiary undertakings;
(b) the giving to a third party of a guarantee, security or indemnity in
respect of a debt or obligation of the Company or any of its subsidiary
undertakings for which he himself has assumed responsibility in whole or in
part, either alone or jointly with others, under a guarantee or indemnity
or by the giving of security;
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(c) a contract, arrangement, transaction or proposal concerning an offer of
shares, debentures or other securities of the Company or any of its
subsidiary undertakings for subscription or purchase, in which offer he is
or may be entitled to participate as a holder of securities or in the
underwriting or sub-underwriting of which he is to participate;
(d) a contract, arrangement, transaction or proposal to which the Company is or
is to be a party concerning another company (including a subsidiary
undertaking of the Company) in which he is interested (directly or
indirectly) (a RELEVANT COMPANY) and whether as an officer, shareholder,
creditor or otherwise, if he is not the holder of or beneficially
interested in one per cent. or more of the capital of the relevant company.
For the purposes of this paragraph (d):
(i) a director is deemed to have an interest in one per cent. or more of
the capital of a relevant company if he (together with any interest
of any person connected with him) is the holder of or beneficially
interested (as that term is used in sections 198 to 211 of the Act)
in one per cent. or more of a class of equity share capital of the
relevant company or of the voting rights available to members of the
relevant company (or any other body corporate through which his
interest is derived) or if he can cause one per cent. or more of
those voting rights to be cast at his direction (any such interest
being deemed for the purpose of this Article to be a material
interest in all circumstances); and
(ii) where a director is deemed for the purposes of this paragraph (d) to
be interested in one per cent. or more in the capital of a relevant
company and that relevant company is materially interested in a
contract, the director is also deemed to be materially interested in
that contract;
(e) a contract, arrangement, transaction or proposal concerning the adoption,
modification or operation of a pension, superannuation or similar scheme or
retirement, death or disability benefits scheme or personal pension plan or
employees' share scheme under which he may benefit and which either (a) has
been approved by or is subject to and conditional on approval by the Inland
Revenue for taxation purposes, or (b) relates to both employees and
directors of the Company (or any of its subsidiary undertakings) and does
not accord to a director as such a privilege or advantage not accorded to
the employees to whom the scheme or fund relates;
(f) a contract, arrangement, transaction or proposal for the benefit of
employees of the Company or any of its subsidiary undertakings under which
the director benefits in a similar manner to employees and which does not
accord to a director as such a privilege or advantage not accorded to the
employees to whom it relates; and
(g) a contract, arrangement, transaction or proposal concerning the purchase or
maintenance of any insurance policy under which he may benefit.
105.4 A director may not vote or be counted in the quorum on a resolution of the
board or committee of the board concerning his own appointment (including fixing
or varying the terms of his appointment or its termination) as the holder of an
office or
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place of profit with the Company or any company in which the Company
is interested. Where proposals are under consideration concerning the
appointment (including fixing or varying the terms of appointment or its
termination) of two or more directors to offices or places of profit with the
Company or a company in which the Company is interested, such proposals shall be
divided and a separate resolution considered in relation to each director. In
such case each of the directors concerned (if not otherwise debarred from voting
under this article 105) is entitled to vote (and be counted in the quorum) in
respect of each resolution except that concerning his own appointment.
105.5 If a question arises at a meeting as to the materiality of a director's
interest (other than the interest of the chairman of the meeting) or as to the
entitlement of a director (other than the chairman) to vote or be counted in a
quorum and the question is not resolved by his voluntarily agreeing to abstain
from voting or being counted in the quorum, the question shall be referred to
the chairman and his ruling in relation to the director concerned is conclusive
and binding on all concerned.
105.6 If a question arises at a meeting as to the materiality of the interest of
the chairman of the meeting or as to the entitlement of the chairman to vote or
be counted in a quorum and the question is not resolved by his voluntarily
agreeing to abstain from voting or being counted in the quorum, the question
shall be decided by resolution of the directors or committee members present at
the meeting (excluding the chairman) whose majority vote is conclusive and
binding on all concerned.
105.7 For the purposes of this article 105, the interest of a person who is for
the purposes of the Acts connected with (within the meaning of section 346 of
the Act) a director is treated as the interest of the director and, in relation
to an alternate director, the interest of his appointor shall be treated as the
interest of the alternate director in addition to an interest which the
alternate director otherwise has. This article 105 applies to an alternate
director as if he were a director otherwise appointed.
105.8 For the avoidance of doubt, any Liberty Designated Director or Microsoft
Designated Director shall be deemed, for all purposes (and not only for the
purposes of the articles), not to have an interest in any contract, arrangement,
transaction or proposal in which Liberty or Microsoft respectively and the
members of their respective groups or associates have an interest.
PROCEEDINGS OF DIRECTORS AND COMMITTEES
BOARD MEETINGS
106. Subject to the articles, the board may meet for the despatch of business,
adjourn and otherwise regulate its proceedings as it thinks fit.
NOTICE OF BOARD MEETINGS
107. A director may, and the secretary at the request of a director shall,
summon a board meeting at any time. Notice of a board meeting is deemed to be
duly given to a director if it is given to him personally or by word of mouth or
sent in writing to him at his last-known address or another address given by him
to the Company for that purpose at least 24 hours in advance of a meeting. A
director may waive the requirement that
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notice be given to him of a board meeting, either prospectively or
retrospectively. A director absent or intending to be absent from the United
Kingdom or the United States of America may request that notices of board
meetings during his absence be sent in writing to him at an address given by him
to the Company for that purpose. If no request is made it is not necessary to
give notice of a board meeting to a director who is absent from the United
Kingdom or the United States of America.
QUORUM
108. The quorum necessary for the transaction of business is a majority of the
directors present in person or by alternate director. A duly convened meeting of
the board at which a quorum is present is competent to exercise all or any of
the authorities, powers and discretions vested in or exercisable by the board.
CHAIRMAN OF BOARD
109. The board may appoint one of its body as chairman to preside at every board
meeting at which he is present and one or more deputy chairmen and decide the
period for which he is or they are to hold office (and may at any time remove
him or them from office). If no chairman or deputy chairman is elected, or if at
a meeting neither the chairman nor a deputy chairman is present within five
minutes of the time fixed for the start of the meeting, the directors and
alternate directors (in the absence of their appointors) present shall choose
one of their number to be chairman. If two or more deputy chairmen are present,
the senior of them shall act as chairman, seniority being determined by length
of office since their last appointment or reappointment. As between two or more
who have held office for an equal length of time, the deputy chairman to act as
chairman shall be decided by those directors and alternate directors (in the
absence of their appointors) present. A chairman or deputy chairman may hold
executive office or employment with the Company.
VOTING
110. Questions arising at a meeting of the board are determined by a majority of
votes. In case of an equality of votes the chairman shall not have a second or
casting vote.
PARTICIPATION BY TELEPHONE
111. A director or his alternate director may participate in a meeting of the
board or a committee of the board through the medium of conference telephone or
similar form of communication equipment if all persons participating in the
meeting are able to hear and speak to each other throughout the meeting. A
person participating in this way is deemed to be present in person at the
meeting and is counted in a quorum and entitled to vote. Subject to the Acts,
all business transacted in this way by the board or a committee of the board is
for the purposes of the articles deemed to be validly and effectively transacted
at a meeting of the board or a committee of the board although fewer than two
directors or alternate directors are physically present at the same place. The
meeting is deemed to take place where the largest group of those participating
is assembled or, if there is no such group, where the chairman of the meeting
then is.
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RESOLUTION IN WRITING
112. A resolution in writing executed by all directors for the time being
entitled to receive notice of a board meeting and not being less than a quorum
or by all members of a committee of the board is as valid and effective for all
purposes as a resolution passed at a meeting of the board (or committee, as the
case may be). The resolution in writing may consist of several documents in the
same form each executed by one or more of the directors or members of the
relevant committee. The resolution in writing need not be signed by an alternate
director if it is signed by his appointor and a resolution signed by an
alternate director need not be signed by his appointor.
PROCEEDINGS OF COMMITTEES
113.1 Proceedings of committees of the board shall be conducted in accordance
with regulations prescribed by the board (if any). Subject to those regulations
and articles 113.2 and 113.3, proceedings shall be conducted in accordance with
applicable provisions of the articles regulating the proceedings of the board.
113.2 Where the board resolves to delegate any of its powers, authorities and
discretions to a committee and that resolution states that the committee shall
consist of any one or more unnamed directors, it is not necessary to give notice
of a meeting of that committee to directors other than the director or directors
who form the committee.
113.3 The quorum necessary for the transaction of business of any committee
shall be a majority of the members of such committee who are directors present
in person or by an alternate director.
MINUTES OF PROCEEDINGS
114.1 The board shall cause minutes to be made in books kept for the purpose of:
(a) all appointments of officers and committees made by the board and of any
remuneration fixed by the board; and
(b) the names of directors present at every meeting of the board, committees of
the board, the Company or the holders of a class of shares or debentures,
and all orders, resolutions and proceedings of such meetings.
114.2 If purporting to be signed by the chairman of the meeting at which the
proceedings were held or by the chairman of the next succeeding meeting, minutes
are receivable as prima facie evidence of the matters stated in them.
VALIDITY OF PROCEEDINGS OF BOARD OR COMMITTEE
115. All acts done by a meeting of the board, or of a committee of the board, or
by a person acting as a director, alternate director or member of a committee
are, notwithstanding that it is afterwards discovered that there was a defect in
the appointment of a person or persons acting, or that they or any of them were
or was disqualified from holding office or not entitled to vote, or had in any
way vacated their or his office, as valid as if every such person had been duly
appointed, and was duly qualified and had continued to be a director, alternate
director or member of a committee and entitled to vote.
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SECRETARY AND AUTHENTICATION OF DOCUMENTS
SECRETARY
116.1 Subject to the Acts, the board shall appoint a secretary or joint
secretaries and may appoint one or more persons to be an assistant or deputy
secretary on such terms and conditions (including remuneration) as it thinks
fit. The board may remove a person appointed pursuant to this article from
office and appoint another or others in his place.
116.2 Any provision of the Acts or of the articles requiring or authorising a
thing to be done by or to a director and the secretary is not satisfied by its
being done by or to the same person acting both as director and as, or in the
place of, the secretary.
AUTHENTICATION OF DOCUMENTS
117. A director or the secretary or another person appointed by the board for
the purpose may authenticate documents affecting the constitution of the Company
(including the memorandum of association and the articles) and resolutions
passed by the Company or holders of a class of shares or the board or a
committee of the board and books, records, documents and accounts relating to
the business of the Company, and to certify copies or extracts as true copies or
extracts.
SEALS
SAFE CUSTODY
118. The board shall provide for the safe custody of every seal.
APPLICATION OF SEALS
119. A seal may be used only by the authority of a resolution of the board or of
a committee of the board. The board may decide who will sign an instrument to
which a seal is affixed (or, in the case of a share certificate, on which the
seal may be printed) either generally or in relation to a particular instrument
or type of instrument. The board may also decide, either generally or in a
particular case, that a signature may be dispensed with or affixed by mechanical
means. Unless otherwise decided by the board:
(a) share certificates and certificates issued in respect of debentures or
other securities (subject to the provisions of the relevant instrument)
need not be signed or, if signed, a signature may be applied by mechanical
or other means or may be printed; and
(b) every other instrument to which a seal is affixed shall be signed by one
director and by the secretary or a second director.
OFFICIAL SEAL FOR USE ABROAD
120. The Company may exercise the powers conferred by the Acts with regard to
having an official seal for use abroad, and those powers shall be vested in the
board.
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DIVIDENDS AND OTHER PAYMENTS
DECLARATION OF DIVIDENDS
121. Subject to the Acts and the articles, the Company may by ordinary
resolution declare a dividend to be paid to the members according to their
respective rights and interests, but no dividend may exceed the amount
recommended by the board.
INTERIM DIVIDENDS
122. Subject to the Acts, the board may declare and pay such interim dividends
(including a dividend payable at a fixed rate) as appear to it to be justified
by the profits of the Company available for distribution. If the share capital
is divided into different classes, the board may pay interim dividends on shares
which rank after shares conferring preferred rights with regard to dividend as
well as on shares with preferred rights, unless at the time of payment a
preferential dividend is in arrear. If the board acts in good faith, it does not
incur any liability to the holders of shares conferring preferred rights for a
loss they may suffer by the lawful payment of an interim dividend on shares
ranking after those with preferred rights.
ENTITLEMENT TO DIVIDENDS
123. Except as otherwise provided by the rights attached to shares, a dividend
shall be declared and paid according to the amounts paid up on the shares in
respect of which the dividend is declared and paid, but no amount paid up on a
share in advance of a call may be treated for the purpose of this article as
paid up on the share. Dividends shall be apportioned and paid proportionately to
the amounts paid up on the shares during any portion or portions of the period
in respect of which the dividend is paid.
METHOD OF PAYMENT
124.1 The Company may pay a dividend, interest or another amount payable in
respect of a share in cash or by cheque, dividend warrant or money order, or by
a bank or other funds transfer system, or by such other method as the holder or
joint holders of the share in respect of which the payment is made (or the
person or persons entitled by transmission to the share) may in writing direct.
Any joint holder or other person jointly entitled to a share may give an
effective receipt for a dividend, interest or other amount paid in respect of
the share.
124.2 The Company may send a cheque, warrant or order by post (i) in the case of
a sole holder, to his registered address, or (ii) in the case of joint holders,
to the registered address of the person whose name stands first in the register,
or (iii) in the case of a person or persons entitled by transmission to a share,
as if it were a notice given in accordance with article 139, or (iv) in any
case, to a person and address that the person or persons entitled to the payment
may in writing direct.
124.3 Every cheque, warrant or order is sent at the risk of the person entitled
to the payment and shall be made payable to the order of the person or persons
entitled. The payment of the cheque, warrant or order is a good discharge to the
Company. If payment is made by a bank or other funds transfer, or by another
method at the direction of the holder or holders or other person or persons
entitled, the Company is not
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responsible for amounts lost or delayed in the course of the transfer or in
carrying out these directions.
124.4 Without prejudice to article 67, the board may withhold payment of a
dividend (or part of a dividend) payable to a person entitled by transmission to
a share until he has provided any evidence of his right that the board may
reasonably require.
124.5 Where an Approved Depositary (approved by the board for the purposes of
this article 124.5) has requested to receive dividends in a currency other than
pounds sterling, the board may in its absolute discretion approve the entering
into of arrangements with such Approved Depositary to enable payment of any
dividend to be made to such Approved Depositary in such other currency for value
on the date on which the relevant dividend is paid, or such later date as the
board may determine.
DIVIDENDS NOT TO BEAR INTEREST
125. No dividend or other amount payable by the Company in respect of a share
bears interest as against the Company unless otherwise provided by the rights
attached to the share.
CALLS OR DEBTS MAY BE DEDUCTED FROM DIVIDENDS ETC.
126. The board may deduct from a dividend or other amounts payable to a person
in respect of a share amounts due from him to the Company on account of a call
or otherwise in relation to a share.
UNCLAIMED DIVIDENDS ETC.
127. All unclaimed dividends, interest or other amounts payable by the Company
in respect of a share may be invested or otherwise made use of by the board for
the benefit of the Company until claimed. Dividends unclaimed for a period of 12
years from the date they became due for payment are forfeited and cease to
remain owing by the Company. The payment of an unclaimed dividend, interest or
other amount payable by the Company in respect of a share into a separate
account does not constitute the Company a trustee in respect of it.
UNCASHED DIVIDENDS
128. If, in respect of a dividend or other amount payable in respect of a share,
on any one occasion:
(a) a cheque, warrant or order is returned undelivered or left uncashed, or
(b) a transfer made by a bank or other funds transfer system is not accepted,
and reasonable enquiries have failed to establish another address or account of
the person entitled to the payment, the Company is not obliged to send or
transfer a dividend or other amount payable in respect of that share to that
person until he notifies the Company of an address or account to be used for
that purpose. If the cheque, warrant or order is returned undelivered or left
uncashed or transfer not accepted on two consecutive occasions, the Company may
exercise this power without making any such enquiries.
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PAYMENT OF DIVIDENDS IN SPECIE
129. Without prejudice to article 123, the board may, with the prior authority
of an ordinary resolution of the Company, direct that payment of a dividend may
be satisfied wholly or in part by the distribution of specific assets and in
particular of paid-up shares or debentures of another company. Where a
difficulty arises in connection with the distribution, the board may settle it
as it thinks fit and in particular may issue fractional certificates (or ignore
fractions), may fix the value for distribution of the specific assets (or any
part of them), may decide that a cash payment be made to a member on the basis
of the value so fixed, in order to secure equality of distribution, and may vest
assets in trustees on trust for the persons entitled to the dividend as may seem
expedient to the board.
PAYMENT OF SCRIP DIVIDENDS
130.1 Subject to the Acts, but without prejudice to article 123, the board may,
with the prior authority of an ordinary resolution of the Company, allot to
those holders of a particular class of shares who have elected to receive them
further shares of that class or ordinary shares, in either case credited as
fully paid, (NEW SHARES) instead of cash in respect of all or part of a dividend
or dividends specified by the resolution, subject to any exclusions,
restrictions or other arrangements the board may in its absolute discretion deem
necessary or expedient to deal with legal or practical problems under the laws
of, or the requirements of a recognised regulatory body or a stock exchange in,
any territory.
130.2 Where a resolution under article 130.1 is to be proposed at a general
meeting and the resolution relates in whole or in part to a dividend to be
declared at that meeting, then the resolution declaring the dividend is deemed
to take effect at the end of that meeting.
130.3 A resolution under article 130.1 may relate to a particular dividend or to
all or any dividends declared or paid within a specified period, but that period
may not end later than the beginning of the fifth annual general meeting
following the date of the meeting at which the resolution is passed.
130.4 The board shall determine the basis of allotment of new shares so that, as
nearly as may be considered convenient without involving rounding up of
fractions, the value of the new shares (including a fractional entitlement) to
be allotted (calculated by reference to the average quotation, or the nominal
value of the new shares, if greater) equals (disregarding an associated tax
credit) the amount of the dividend which would otherwise have been received by
the holder (the RELEVANT DIVIDEND). For this purpose the AVERAGE QUOTATION of
each of the new shares is the average of the middle-market quotations for a
fully-paid share of the Company of that class derived from the Daily Official
List of the London Stock Exchange on the business day on which the relevant
class of shares is first quoted ex the relevant dividend (or such other date as
the board may deem appropriate to take account of any subsequent issue of shares
by the Company) and the four subsequent business days or shall be as determined
by or in accordance with the ordinary resolution.
130.5 The board may make any provision it considers appropriate in relation to
an allotment made pursuant to this article, including but not limited to:
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(a) the giving of notice to holders of the right of election offered to them;
(b) the provision of forms of election (whether in respect of a particular
dividend or dividends generally);
(c) determination of the procedure for making and revoking elections;
(d) the place at which, and the latest time by which, forms of election and
other relevant documents must be lodged in order to be effective; and
(e) the disregarding or rounding up or down or carrying forward of fractional
entitlements, in whole or in part, or the accrual of the benefit of
fractional entitlements to the Company (rather than to the holders
concerned).
130.6 The dividend (or that part of the dividend in respect of which a right of
election has been offered) is not declared or payable on shares in respect of
which an election has been duly made (the ELECTED SHARES); instead new shares
are allotted to the holders of the elected shares on the basis of allotment
calculated as in article 130.4. For that purpose, the board may resolve to
capitalise out of amounts standing to the credit of reserves (including a share
premium account, capital redemption reserve and profit and loss account),
whether or not available for distribution, a sum equal to the aggregate nominal
amount of the new shares to be allotted and apply it in paying up in full the
appropriate number of new shares for allotment and distribution to the holders
of the elected shares. A resolution of the board capitalising part of the
reserves has the same effect as if the capitalisation had been declared by
ordinary resolution of the Company pursuant to article 131. In relation to the
capitalisation the board may exercise all the powers conferred on it by article
131 without an ordinary resolution of the Company.
130.7 The new shares rank pari passu in all respects with each other and with
the fully-paid shares of the same class in issue on the record date for the
dividend in respect of which the right of election has been offered, but they
will not rank for a dividend or other distribution or entitlement which has been
declared or paid by reference to that record date.
CAPITALISATION OF PROFITS
131. Subject to the Acts, the board may, with the authority of an ordinary
resolution of the Company:
(a) resolve to capitalise an amount standing to the credit of reserves
(including a share premium account, capital redemption reserve and profit
and loss account), whether or not available for distribution;
(b) appropriate the sum resolved to be capitalised to the members in proportion
to the nominal amount of ordinary shares and limited voting shares (whether
or not fully paid) held by them respectively and apply that sum on their
behalf in or towards:
(i) paying up the amounts (if any) for the time being unpaid on shares
held by them respectively, or
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(i) paying up in full unissued shares or debentures of a nominal amount
equal to that sum,
and allot the shares or debentures, credited as fully paid, to the members
(or as they may direct) in those proportions, or partly in one way and
partly in the other, but the share premium account, the capital redemption
reserve and profits which are not available for distribution may, for the
purposes of this article 131, only be applied in paying up unissued shares
to be allotted to members credited as fully paid;
(c) make any arrangements it thinks fit to resolve a difficulty arising in the
distribution of a capitalised reserve and in particular, where shares or
debentures become distributable in fractions, the board may deal with the
fractions as it thinks fit, including issuing fractional certificates,
disregarding fractions or selling shares or debentures representing the
fractions to a person for the best price reasonably obtainable and
distributing the net proceeds of the sale in due proportion amongst the
members (except that if the amount due to a member is less than (pound)3,
or such other sum as the board may decide, the sum may be retained for the
benefit of the Company);
(d) authorise a person to enter (on behalf of all the members concerned) into
an agreement with the Company providing for either:
(i) the allotment to the members respectively, credited as fully paid, of
shares or debentures to which they may be entitled on the
capitalisation, or
(ii) the payment by the Company on behalf of the members (by the
application of their respective proportions of the reserves resolved
to be capitalised) of the amounts or part of the amounts remaining
unpaid on their existing shares,
an agreement made under such authority being effective and binding on all
those members; and
(e) generally do all acts and things required to give effect to the resolution.
RECORD DATES
132. Notwithstanding any other provision of the articles, but subject to the
Acts and rights attached to shares, the Company or the board may fix any date as
the record date for a dividend, distribution, allotment or issue. The record
date may be on or at any time before or after a date on which the dividend,
distribution, allotment or issue is declared, made or paid.
ACCOUNTS
INSPECTION OF ACCOUNTS
133.1 The board shall ensure that accounting records are kept in accordance with
the Acts.
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133.2 The accounting records shall be kept at the office or, subject to the
Acts, at another place decided by the board and shall be available during
business hours for the inspection of the directors and other officers. No member
(other than a director or other officer) has the right to inspect an accounting
record or other document except if a right is conferred by the Acts or he is
authorised by the board.
ACCOUNTS TO BE SENT TO MEMBERS ETC.
134.1 In respect of each financial year, a copy of the Company's annual
accounts, directors' report and auditors' report on those accounts shall be sent
by post or delivered to:
(a) every member (whether or not entitled to receive notices of general
meetings),
(b) every holder of debentures (whether or not entitled to receive notices of
general meetings), and
(c) every other person who is entitled to receive notices of general meetings,
not less than 21 clear days before the date of the meeting at which copies of
those documents are to be laid in accordance with the Acts. This article 134
does not require copies of the documents to which it applies to be sent or
delivered to:
(i) a member or holder of debentures of whose address the Company is unaware,
or
(ii) more than one of the joint holders of shares or debentures.
134.2 Where permitted by the Acts, a summary financial statement derived from
the Company's annual accounts and the directors' report in the form and
containing the information prescribed by the Acts may be sent or delivered to a
person in place of the documents required to be sent or delivered by article
135.1.
NOTICES
135. A notice to be given to or by a person pursuant to the articles shall be in
writing except that a notice convening a meeting of the board or of a committee
of the board need not be in writing.
SERVICE OF NOTICES AND OTHER DOCUMENTS ON MEMBERS
136.1 A notice or other document may be given to a member by the Company either
personally or by sending it by post in a pre-paid envelope addressed to the
member at his registered address, or by leaving it at that address (or at
another address notified for the purpose) in an envelope addressed to the
member.
136.2 In the case of joint holders of a share, a notice or other document shall
be given to whichever of them is named first in the register in respect of the
joint holding and notice given in this way is sufficient notice to all joint
holders.
136.3 If a member (or, in the case of joint holders, the person first named in
the register) has a registered address outside the United Kingdom or the United
States of
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America but has notified the Company of an address in the United Kingdom or the
United States of America at which notices or other documents may be given to
him, he is entitled to have notices given to him at that address, but otherwise
no such member or person is entitled to receive a notice or other document from
the Company.
NOTICE BY ADVERTISEMENT
137. If by reason of the suspension or curtailment of postal services in the
United Kingdom or the United States of America the Company is unable effectively
to convene a general meeting by notices sent by post, the board may, in its
absolute discretion and as an alternative to any other method of service
permitted by the articles, resolve to convene a general meeting by a notice
advertised in at least, in the case of the suspension or curtailment of postal
services in the United Kingdom, one leading United Kingdom national daily
newspaper and, in the case of the suspension or curtailment of postal services
in the United States of America, the Wall Street Journal and the New York Times,
(but, if any such newspaper shall by reason of industrial action or otherwise
not be published on the date on which the advertisement is due to appear,
publication in such other newspaper(s) as the board shall consider appropriate
shall be sufficient). In this case the Company shall send confirmatory copies of
the notice by post if at least seven clear days before the meeting the posting
of notices to addresses throughout the United Kingdom and/or the United States
of America again becomes practicable.
EVIDENCE OF SERVICE
138.1 A notice or other document addressed to a member at his registered address
or address for service in the United Kingdom or the United States of America is,
if sent by post (by airmail if posted from outside the United Kingdom to an
address within the United Kingdom or from outside the United States of America
to an address within the United States of America), deemed to be given within 24
hours if pre-paid as first class post and within 48 hours if pre-paid as second
class post after it has been posted, and in proving service it is sufficient to
prove that the envelope containing the notice or document was properly
addressed, pre-paid and posted.
138.2 A notice or document not sent by post but left at a registered address or
address for service in the United Kingdom or the United States of America is
deemed to be given on the day it is left.
138.3 Where notice is given by newspaper advertisements, the notice is deemed to
be given to all members and other persons entitled to receive it at noon on the
day when the advertisements appear or, if they appear on different days, at noon
on the last of the days when the advertisements appear.
138.4 A member present in person or by proxy at a meeting or of the holders of a
class of shares is deemed to have received due notice of the meeting and, where
required, of the purposes for which it was called.
NOTICE BINDING ON TRANSFEREES ETC.
139. A person who becomes entitled to a share by transmission, transfer or
otherwise is bound by a notice in respect of that share (other than a notice
served by
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the Company under section 212 of the Act) which, before his name is entered in
the register, has been properly served on a person from whom he derives his
title.
NOTICE IN CASE OF ENTITLEMENT BY TRANSMISSION
140. Where a person is entitled by transmission to a share, the Company may give
a notice or other document to that person as if he were the holder of a share by
addressing it to him by name or by the title of representative of the deceased
or trustee of the bankrupt member (or by similar designation) at an address in
the United Kingdom or the United States of America supplied for that purpose by
the person claiming to be entitled by transmission. Until an address has been
supplied, a notice or other document may be given in any manner in which it
might have been given if the death or bankruptcy or other event had not
occurred. The giving of notice in accordance with this article is sufficient
notice to all other persons interested in the share.
MISCELLANEOUS
DESTRUCTION OF DOCUMENTS
141.1 The Company may destroy:
(a) a share certificate which has been cancelled at any time after one year
from the date of cancellation;
(b) a mandate for the payment of dividends or other amounts or a variation or
cancellation of a mandate or a notification of change of name or address at
any time after two years from the date the mandate, variation, cancellation
or notification was recorded by the Company;
(c) an instrument of transfer of shares (including a document constituting the
renunciation of an allotment of shares) which has been registered at any
time after six years from the date of registration; and
(d) any other document on the basis of which any entry in the register is made
at any time after six years from the date an entry in the register was
first made in respect of it.
141.2 It is presumed conclusively in favour of the Company that every share
certificate destroyed was a valid certificate validly cancelled, that every
instrument of transfer destroyed was a valid and effective instrument duly and
properly registered and that every other document destroyed was a valid and
effective document in accordance with the recorded particulars in the books or
records of the Company, but:
(a) the provisions of this article 141 apply only to the destruction of a
document in good faith and without express notice to the Company that the
preservation of the document is relevant to a claim;
(b) nothing contained in this article 141 imposes on the Company liability in
respect of the destruction of a document earlier than provided for in this
article 141 or in any case where the conditions of this article are not
fulfilled; and
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(c) references in this article 141 to the destruction of a document include
reference to its disposal in any manner.
WINDING UP
142. On a voluntary winding up of the Company the liquidator may, on obtaining
any sanction required by law, divide among the members in kind the whole or any
part of the assets of the Company, whether or not the assets consist of property
of one kind or of different kinds. For this purpose the liquidator may set the
value he deems fair on a class or classes of property, and may determine on the
basis of that valuation and in accordance with the then existing rights of
members how the division is to be carried out between members or classes of
members. The liquidator may not, however, distribute to a member without his
consent an asset to which there is attached a liability or potential liability
for the owner.
INDEMNITY
143.1 Subject to the Acts, but without prejudice to an indemnity to which he may
otherwise be entitled, every officer of the Company shall be indemnified out of
the assets of the Company against all costs, charges, losses and liabilities
incurred by him in the execution of his duties or the exercise of his powers,
authorities and discretions including (without prejudice to the generality of
the foregoing) a liability incurred:
(a) defending proceedings (whether civil or criminal) in which judgment is
given in his favour or in which he is acquitted, or which are otherwise
disposed of without a finding or admission of material breach of duty on
his part, or
(b) in connection with any application in which relief is granted to him by the
court from liability for negligence, default, breach of duty or breach of
trust in relation to the affairs of the Company.
143.2 The board may exercise all the powers of the Company to purchase and
maintain insurance for the benefit of a person who is an officer or employee, or
former officer or employee, of the Company or of a company which is a subsidiary
undertaking of the Company or in which the Company has an interest (whether
direct or indirect), or who is or was trustee of a retirement benefits scheme or
another trust in which an officer or employee or former officer or employee is
or has been interested, indemnifying him against liability for negligence,
default, breach of duty or breach of trust or another liability which may
lawfully be insured against by the Company.
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