23 Share capital

At the last Annual General Meeting, shareholder authority was obtained for the Company to purchase up to a maximum of 70.3 million of its own ordinary shares (representing 10% of the issued share capital of the Company on 31 December 2006) for a period ending on the earlier of the next Annual General Meeting or 3 August 2008, provided that certain conditions (relating to the purchase price) are met. The Notice of Annual General Meeting proposes that shareholders approve a resolution updating and renewing this authority. Shares in the Company may also be purchased by the GKN Employee’s Share Ownership Plan (ESOP) Trust.

At 31 December 2007 there were 38,659,142 ordinary shares of 50p each (nominal value £19.3 million (2006 – £19.3 million)) held as treasury shares. No shares were purchased in the open market during the year. In 2006 13,439,142 shares were purchase at a cost of £40 million including expenses. These shares, which represented 5.2% (2006 – 5.2%) of the called up share capital at the end of the year, have not been cancelled but are held as treasury shares and represent a deduction from shareholders’ equity.

During the year shares issued under the share option schemes generated £5 million (2006 – £3 million).