This excerpt taken from the ICI 6-K filed Mar 21, 2007.
Called up £1 Ordinary share capital of the parent company
The Company has one class of ordinary shares which carries no right to fixed income.
Limitation of borrowings
The Group has acquired, or is committed to acquire under forward contracts, 25.6 million shares or ADSs of the Company to hedge its obligations under the Senior Staff and Executive Share Options and Stock Appreciation Rights, the Performance Growth Plan and the Performance Share Plan. 2.5 million shares purchased in the market are held by a trust. In addition, the trust has entered into forward commitments to purchase 23.1 million shares at a weighted average cost of £4.43 per share (total balance sheet liability of £102m) in 2007, although the trust has the option to roll forward these commitments for further periods if required. These forward commitments include collateral requirements related to the prevailing share price of the Company. At 31 December 2006, no collateral is posted with the counterparties to these transactions. The contracts include the right to either take delivery of shares or to net settle the contracts in cash. On 19 January 2007, the Group settled its forward commitments and took delivery of 23.1m shares with a total cash outflow of £126m (£102m relating to the cost and £24m relating to the accrued finance charges). These shares are intended to satisfy requirements for share awards and share options exercisable in the period 2007 to 2016.
Notes relating to the Group accounts continued
The proposed 2006 second interim dividend will be submitted to the shareholders for confirmation at the Annual General Meeting and has not been recognised as a distribution to equity holders in reserves or included as a liability in these financial statements.
Impkemix Trustee Limited, a wholly owned subsidiary which acts as a trustee for the Imperial Chemical Industries PLC Employee Benefit Trust (the Trust) has waived the right to receive dividends on shares held by the Trust in its own name. Dividends received on shares allocated to beneficiaries and shares held in the form of American Depositary Shares (ADSs) are distributed, respectively, to beneficiaries and ADS shareholders.