Notes to the Accounts

23. Share Capital

NOTE: The ordinary shares referred to above, as defined in the memorandum and articles of association of the Company, are equivalent to equity shares as defined by FRS4. The consideration received in respect of shares issued during the year was £347m (1997: £27m). Options granted under certain of the Company’s employee share option schemes were adjusted following the demerger of Royal Doulton plc. In the case of those ‘Save As You Earn’ and executive share options which were not adjustable, compensation is to take the form of additional Pearson shares distributed from an employee share trust when the options are exercised. If all these options are exercised the maximum amount of equity shares to be issued is estimated at 12,145 under the Save for Shares scheme and 10,822 under the executive schemes. Shares issued include £3m under the scrip dividend plan.

NOTE: The subscription prices have been rounded down to the nearest whole penny.