18.1 Introduction

Until comparatively recently, this topic attracted relatively little comment and discussion. The Companies Act 1985 set out disclosure requirements for share capital and reserves, whilst FRS 4 set out rules for distinguishing between equity shareholders' funds and non-equity shareholders' funds.

Recent developments include the new standard on Financial instruments: Disclosure and presentation, FRS 25 (see Chapter 17).

18.2 Share Capital Disclosures Companies Act 1985

The Companies Act 1985 requires disclosure of:

1. Authorized share capital.

2. Allotted share capital:

   1. where more than one class of shares allotted, number and aggregate nominal value of each class;

   2. amount of allotted share capital;

   3. amount of called-up share capital which has been paid up.

3. Allotted redeemable shares:

   1. earliest and latest dates on which company has power to redeem;

   2. whether redemption is mandatory or at option of company;

   3. premium, if any, payable on redemption.

4. Shares allotted during the financial year:

   1. reasons for making the allotment;

   2. classes of shares allotted;

   3. for each class of share:

      1. number allotted,

      2. aggregate nominal value,

      3. consideration received by company.

5. Options to subscribe for shares and any other rights to require allotment of shares to any person (including convertible loan stock):

   1. number, description and amount of shares in relation to which right is exercisable;

   2. period during which it is exercisable;

   3. price to be paid for the shares allotted.