19 Share capital

 
  Non-equity Equity
  Special Share
of £1		 Preference
shares
of £1 each		 Nominal
value
£m		   Ordinary
shares
of 20p each
Millions		 Nominal
value
£m
Authorised            
At January 1, 2006 and December 31, 2007 1 50,000 —   2,500 500
Issued and fully paid            
At January 1, 2006 1 — —   1,758 352
Exercise of share options — — —   8 1
B Share conversion into ordinary shares — — —   15 3
At January 1, 2007 1 — —   1,781 356
Exercise of share options — — —   24 5
B Share conversion into ordinary shares — — —   15 3
At December 31, 2007 1 — —   1,820 364

Certain rights, set out in the Company's Articles of Association, attach to the special rights redeemable preference share (Special Share) issued to HM Government. Subject to the provisions of the Companies Act 1985, the Special Share may be redeemed by the Treasury Solicitor at par at any time. The Special Share confers no rights to dividends or to vote at general meetings but in the event of a winding-up it shall be repaid at its nominal value in priority to any other shares.

In accordance with IAS 32 Financial Instruments: Presentation, the Company's non-cumulative redeemable convertible preference shares (B Shares) are classified as financial liabilities. Accordingly, movements in B Shares are included in note 16.

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