27 Share capital, share premium and employee scheme shares

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(i) Share capital and share premium
Authorised share capital		2008 Number of shares	2008 £m	2007 £m
At 31 December: ordinary shares of 2.5p each		9,200,000,000	230	230

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Issued share capital, fully paid	Notes	Number of shares	Share capital £m	Share premium £m
1. During the year, 449,891,914 shares (2007: 241,207,267 shares) were repurchased and cancelled under the share buyback programme representing 7.1% (2007: 3.7%) of opening issued share capital, at a cost of £523m including expenses (2007: £320m).
As at 1 January 2008		6,296,321,160	157	927
Shares cancelled under share buyback programme1		(449,891,914)	(11)	–
Options exercised under share option schemes
– Executive share option scheme	14	640,846	–	1
– Savings related share option scheme	14	14,557,902	1	8
As at 31 December 2008		5,861,627,994	147	936
As at 1 January 2007		6,532,261,961	163	923
Shares cancelled under share buyback programme1		(241,207,267)	(6)	–
Options exercised under share option schemes
– Executive share option scheme	14	1,961,215	–	2
– Savings related share option scheme	14	3,305,251	–	2
As at 31 December 2007		6,296,321,160	157	927

There is one class of ordinary shares. All shares issued carry equal voting rights.

The holders of the Company’s ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholder meetings of the Company.

(ii) Employee scheme shares

The [Group] uses the Employee Share Ownership Trust (ESOT), Employee Share Trust (EST) and the Legal & General Group Employee Share Plan (ESP) to purchase and hold shares of the Group for delivery to employees under various employee share schemes. Shares owned by these vehicles are included at cost in the consolidated balance sheet and are shown as a deduction from shareholders’ equity. They are disclosed as employee scheme shares until they vest to employees. Share-based liabilities to employees may also be settled via purchases directly from the market or by the issue of new shares.

The [ESOT] has waived its voting rights and its rights to some of the dividends payable on the shares it holds. Employees are entitled to dividends on the shares held on their behalf within the [EST] and the [ESP].

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		Number of shares	2008 £m	2007 £m
As at 1 January		38,176,859	42	45
Shares purchased		8,181,427	10	5
Shares vested		(5,792,858)	(6)	(8)
As at 31 December		40,565,428	46	42