Rathbones secures court nod for share premium cancellation

Published 10/06/2025, 10:52
Rathbones secures court nod for share premium cancellation

LONDON - Rathbones Group PLC (LSE:RAT), a wealth management firm, announced today that the High Court of Justice has granted approval for the cancellation of its share premium account balance as of December 31, 2024. The Share Premium Cancellation had previously been detailed in the Notice of General Meeting on March 31, 2025, and received shareholder approval during the annual general meeting on May 8, 2025.

The legal process for the Share Premium Cancellation will be finalized upon the submission and registration of the Court order and a statement of capital with the Registrar of Companies. Once registered, the cancellation will officially take effect.

The completion of this financial maneuver is not expected to have any impact on the rights associated with the company’s ordinary shares, nor will it change the number of ordinary shares in issue or their nominal value. Additionally, there will be no effect on the total consolidated shareholders’ equity or the Group’s consolidated regulatory capital, including the Common Equity Tier 1 capital.

The Share Premium Cancellation is a balance sheet adjustment that involves the reduction of the share premium account, which is an equity account on the balance sheet. Companies often use such cancellations to reorganize their capital structure for various strategic reasons, such as preparing for potential acquisitions, returning capital to shareholders, or writing off accumulated losses.

Rathbones Group PLC’s move to cancel its share premium account balance aligns with these types of corporate financial strategies. However, it is important to note that such actions are purely internal and do not imply any immediate financial benefit or detriment to shareholders.

The company has stated that the Share Premium Cancellation will not alter the operational or financial strategy of the firm, nor will it modify the Group’s approach to managing its capital resources.

This announcement is based on a press release statement and reflects the formal procedural steps Rathbones Group PLC has undertaken in accordance with corporate governance and regulatory compliance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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