- That pursuant to the provisions of Article 114.2 of the Company’s Articles of Association, and notwithstanding the provisions of Article 114.1 of the Company’s Articles of Association, the directors of the Company shall act in accordance with such directions as may be given to them by ordinary resolution at any general meeting of the Company taking place on or before 1 January 2009.
- That unless proposals are put to the shareholders of the Company in general meeting to alter the capital structure of the Company by either:
26.1 sub-dividing the Company’s issued ordinary shares into:
(i) new ordinary shares of a smaller nominal value; and
(ii) a new class of listed tracking shares representing the Company’s 45 percent economic interest in Cellco Partnership (doing business as Verizon Wireless) and entitling the holders thereof to receive dividends based on the Company’s net earnings attributable to, and dividends received from, Cellco Partnership (doing business as Verizon Wireless), accounted for separately; to receive the net proceeds from the sale or other disposal of the Company’s interest in Cellco Partnership (doing business as Verizon Wireless); and to such other rights and preferences as the board sees fit; or
26.2 adopting a scheme of arrangement under s425 Companies Act 1985 that introduces a new group holding company with a capital structure that includes the following, each of which will be issued pro rata to existing shareholders in consideration for the cancellation of their shares in the Company:
(i) a new class of listed tracking shares representing the Company’s 45 percent economic interest in Cellco Partnership (doing business as Verizon Wireless) and entitling the holders thereof to receive dividends based on the new group holding company’s net earnings attributable to, and dividends received from, Cellco Partnership (doing business as Verizon Wireless), accounted for separately; to receive the net proceeds from the sale or other disposal of the new group holding company’s interest in Cellco Partnership (doing business as Verizon Wireless); and to such other rights and preferences as the board sees fit; and
(ii) 100 percent of the ordinary shares of the new group holding company; or
26.3 adopting a scheme of arrangement under s425 Companies Act 1985 under which shareholders of the Company receive, pro rata to their shareholdings in the Company, in consideration for the cancellation of their shares in the Company:
(i) 100% of the ordinary shares of a new holding company that owns, directly or indirectly, the Company’s entire interest in Cellco Partnership (doing business as Verizon Wireless); and
(ii) 100% of the ordinary shares of a second new holding company that owns, directly or indirectly, the Company’s other assets
by 31 March 2008, all fees payable to the directors of the Company pursuant to the provisions of Article 85 of the Articles of Association of the Company for their services as directors of the Company after that date shall (by reason of this resolution and Article 85.2 of the Articles of Association of the Company) be allocated and paid solely to the Chairman of the Board of Directors of the Company.
- That unless proposals are put to the shareholders of the Company in general meeting to amend the capital structure of the Company by adopting a scheme of arrangement under s425 Companies Act 1985 that introduces a new group holding company with a capital structure that includes the following, each of which will be issued pro rata to existing shareholders in consideration for the cancellation of their shares in the Company:
(i) at least £0.65 principal amount of new listed bonds per issued share in the Company, issued or guaranteed by such holding company or the Company, denominated in such currencies as the board sees fit and bearing interest at such rate and containing such other terms as the board determines, with the advice of the Company’s financial advisors, will result in such bonds trading at par upon issuance; and
(ii) 100 percent of the ordinary shares of the new group holding company
by 31 March 2008, all fees payable to the directors of the Company pursuant to the provisions of Article 85 of the Articles of Association of the Company for their services as directors of the Company after that date shall (by reason of this resolution and Article 85.2 of the Articles of Association of the Company) be allocated and paid solely to the Chairman of the Board of Directors of the Company.
- That the Articles of Association of the Company be amended by the inclusion of the following article to be designated article 189:
“Shareholder approval of certain acquisitions
The Company may not, at any time prior to 31 March 2010, directly or through any direct or indirect subsidiary of the Company, acquire or enter into an agreement to acquire the assets, undertaking, shares, or other equity securities of any person (other than the Company or a person which was a subsidiary of the Company on 31 March 2007) where the aggregate consideration, in the case of any one acquisition, exceeds £1,000,000,000 and, in the case of all transactions completed or agreed to in any consecutive 24 month period, exceeds £5,000,000,000 without the previous sanction of a special resolution of the Company, unless the board shall have submitted to a vote of the shareholders of the Company a resolution to alter the capital structure of the Company through a scheme of arrangement under s425 Companies Act 1985 whereby either:
28.1 a new group holding company is formed to hold 100% of the share capital of the Company and the new group holding company issues to the existing shareholders of the Company, pro rata to their shareholdings in the Company, in consideration for the cancellation of their shares in the Company:
(i) at least £0.65 principal amount of new listed bonds per issued share in the Company, issued or guaranteed by such holding company or the Company, denominated in such currencies as the board sees fit and bearing interest at such rate and containing such other terms as the board determines, with the advice of the Company’s financial advisors, will result in such bonds trading at par upon issuance;
(ii) a new class of listed tracking shares representing in aggregate 100% of the Company’s 45% economic interest in Cellco Partnership (doing business as Verizon Wireless) and entitling the holders thereof to receive dividends based on the new group holding company’s net earnings attributable to, and dividends received from, Cellco Partnership (doing business as Verizon Wireless), accounted for separately; to receive the net proceeds from the sale or other disposal of the new group holding company’s interest in Cellco Partnership (doing business as Verizon Wireless); and to such other rights and preferences as the board sees fit; and
(iii) 100% of the ordinary shares in such new group company; or
28.2 the existing shareholders of the Company receive, pro rata to their shareholdings in the Company, in consideration for the cancellation of their shares in the Company:
(i) 100% of the ordinary shares of a new holding company that owns, directly or indirectly, the Company’s entire interest in Cellco Partnership (doing business as Verizon Wireless);
(ii) 100% of a second new holding company that owns, directly or indirectly, the Company’s other assets; and
(iii) at least £0.65 principal amount of new listed bonds per issued share in the Company, issued or guaranteed by either or both of such holding companies or by the Company, denominated in such currencies as the board sees fit and bearing interest at such rate and containing such other terms as the board determines, with the advice of the Company’s financial advisors, will result in such bonds trading at par upon issuance.”