The company can see how undervalued shares could be short term and hold and sell back to the market at true fair value or hold long term for the balance sheet .
Resolution 18 Authority to purchase own shares
This Resolution seeks to renew the authority for the Company to make market purchases of its own Ordinary
Shares. The authority limits the number of Ordinary Shares that could be purchased up to 5% of the
Company's issued ordinary share capital at, or between, the minimum and maximum prices specified in this
Resolution.
This power would be used only after careful consideration by the Directors, having taken into account market
conditions prevailing at that time, the investment needs of the Company, its opportunities for expansion and
its overall financial position. The Directors would exercise the authority to purchase Ordinary Shares only if
they considered it to be in the best interest of shareholders and if the purchase could be reasonably expected
to result in an increase in earnings per share.
Under the Act, the Company is allowed to hold its own shares in treasury which it has purchased, instead of
cancelling them. Such shares may be resold for cash or used for the purpose of employee share schemes but
all rights attaching to them, including voting rights and any right to receive dividends, are suspended whilst
they are held in treasury. Accordingly, if the Directors exercise the authority conferred by Resolution 18, the
Company will have the option of holding these shares in treasury, rather than cancelling them
