Subsidiary company special re

RNS Number : 2270M

Standard Life plc

19 May 2010

 



Standard Life PLC (the "Company")

In July 2006 following and as part of the demutualisation of The Standard Life Assurance Company, the Company's principal trading subsidiary, Standard Life Assurance Limited ("SLAL") reduced its capital by cancellation of its share premium account.  This resulted in the creation of a special reserve, the distribution of which was restricted by an undertaking to the Court dated 20 July 2006 (the "Undertaking").  The Company wishes to vary the nature of the special reserve (which in SLAL's accounts currently stands at £761m) so as to make it distributable.  If this is approved by the Court then in future years, subject to the usual rules on distributions contained within the Companies Act and elsewhere, SLAL should be entitled to include this amount in the calculation of its distributable reserves.

The mechanism for this variation is through a court process and a Note was presented to the Court of Session in Scotland today (the "Note"), by SLAL, seeking permission to vary the Undertaking in order to make the special reserve distributable.  The Court today made an order that the Note be advertised once in each of the Edinburgh Gazette, The Scotsman and The Financial Times newspapers and will consider the Note in more detail thereafter.

19 May 2010

Enquiries:

Barry Cameron, Media Relations 0131 245 6165

Peter Tyson, General Counsel's Office 0131 246 5717

END

 

END

 

 

MSCUKSVRRKAVAAR