28 Share capital, share premium and employee scheme shares.

(i) Share capital and share premium

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Authorised share capital	2009 Number of shares	2009 £m	2008 £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	2009 Number of shares	Share capital £m	Share premium £m
1. During 2008, 449,891,914 shares were repurchased and cancelled under the share buyback programme representing 7.1% of opening issued share capital, at a cost of £523m including expenses.
As at 1 January 2009		5,861,627,994	147	936
Options exercised under share option schemes
– Executive share option scheme	15	20,000	–	–
– Savings related share option scheme	15	568,786	–	–
As at 31 December 2009		5,862,216,780	147	936
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	15	640,846	–	1
– Savings related share option scheme	15	14,557,902	1	8
As at 31 December 2008		5,861,627,994	147	936

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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	2009 Number of shares	2009 £m	2008 Number of shares	2008 £m
As at 1 January	40,565,428	46	38,176,859	42
Shares purchased	3,140,535	2	8,181,427	10
Shares vested	(9,851,595)	(10)	(5,792,858)	(6)
As at 31 December	33,854,368	38	40,565,428	46