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<div style="font-size:12pt"><p>24. Shareholders’ equity<br /><br />Authorized common stock<br /><br />The authorized stock of Shire plc as at December 31, 2009 was 1,000,000,000 ordinary shares and 2 subscriber ordinary shares.<br /><br />On February 20, 2007 the Company raised $877.3 million, net of associated issue costs, through the private placement of 42.9 million new ordinary shares to certain institutional investors at a price of 1075 pence per share. The newly issued shares represented approximately 8.4 per cent of Shire plc’s issued ordinary share capital prior to the placing.<br /><br />Dividends<br /><br />Under Jersey law, Shire plc is entitled to make payments of dividends from its accumulated profits and other distributable reserves. At December 31, 2009 Shire plc’s distributable reserves were approximately $3.7 billion.<br /><br />Treasury stock <br /><br />The Company records the purchase of its own shares by the ESOT as a reduction of shareholders’ equity based on the price paid for the shares. At December 31, 2009, the ESOT held 5.8 million ordinary shares (2008: 7.3 million; 2007: 8.5 million) and 4.0 million ADSs (2008: 4.5 million; 2007: 1.8 million). During the year to December 31, 2009 a total of 0.1 million (2008: 0.2 million; 2007: 3.0 million) ordinary shares and 0.02 million (2008: 2.8 million; 2007: 1.8 million) ADSs had been purchased for total consideration of $1.0 million (2008: $146.6 million; 2007: $186.0 million), including stamp duty and broker commission. <br /><br />Income Access Share Arrangements (“IAS Trust”)<br /><br />Shire has put into place the IAS Trust which enables Shire ordinary shareholders, other than Shire ADS holders, to elect to receive their dividends either from a company resident for tax purposes in the Republic of Ireland from a Shire group company resident for tax purposes in the UK. <br /><br />Old Shire has issued one income access share to the IAS Trust which is held by the income access share trustee. The mechanics of the arrangements are as follows:<br /><br />(i) If a dividend is announced or declared by Shire plc on the Shire ordinary shares, an amount is paid by Old Shire by way of a dividend on the income access share to the income access share trustee, and such amount is paid by the income access share trustee to the Shire ordinary shareholders who have elected (or are deemed to have elected) to receive dividends under these arrangements. The dividend which would otherwise be payable by Shire to such Shire ordinary shareholders will be reduced by an amount equal to the amount paid to such Shire ordinary shareholders by the income access share trustee.<br /><br />(ii) If the dividend paid on the income access share and on-paid by the income access share trustee to the Shire ordinary shareholders is less than the total amount of the dividend announced or declared by Shire on the Shire ordinary shares, Shire will be obliged to pay a dividend on the Shire ordinary shares equivalent to the amount of the shortfall. In such a case, any dividend paid on the Shire ordinary shares will generally be subject to Irish withholding tax at the rate of 20% or such lower rate as may be applicable under exemptions from withholding tax contained in Irish law.<br /><br />(iii) A Shire ordinary shareholder is entitled to make an income access share election such that he will receive his dividends (which would otherwise be payable by Shire) under these arrangements from Old Shire.<br /><br />(iv) A Shire ordinary shareholder who held 25,000 or fewer Shire ordinary shares at the time he became a Shire ordinary shareholder pursuant to the court sanctioned Scheme of Arrangement, and who did not make a contrary election, is deemed to have made an election (pursuant to the Shire articles of association) such that he will receive his dividends under these arrangements from Old Shire.<br /><br />The ADS Depositary has made an election on behalf of all holders of Shire ADSs such that they will receive dividends from Old Shire under the income access share arrangements. Dividends paid by Old Shire under the income access share arrangements will not under current legislation be subject to any UK or Irish withholding taxes. If a holder of Shire ADSs does not wish to receive dividends from Old Shire under the income access share arrangements, he must withdraw his Shire ordinary shares from the Shire ADS program prior to the dividend record date set by the Depositary and request delivery of the Shire ordinary shares. This will enable him to receive dividends from Shire (if necessary, by making an election to that effect).<br /><br />It is the expectation, although there can be no certainty, that Old Shire will distribute dividends on the income access share to the income access share trustee for the benefit of all Shire ordinary shareholders who make (or are deemed to make) an income access share election in an amount equal to what would have been such Shire ordinary shareholders’ entitlement to dividends from Shire in the absence of the income access share election. If any dividend paid on the income access share and or paid to the Shire ordinary shareholders is less than such ordinary shareholders’ entitlement to dividends from Shire in the absence of the income access share election, the dividend on the income access share will be allocated pro rata among the Shire Ordinary shareholders and Shire will pay the balance by way of dividend. In such circumstances, there will be no grossing up by Shire in respect of, and Old Shire and Shire will not compensate those Shire ordinary shareholders for, any adverse consequences including any Irish withholding tax consequences. <br /><br />Shire will be able to suspend or terminate these arrangements at any time, in which case the full Shire dividend will be paid directly by Shire to those Shire ordinary shareholders (including the Depositary) who have made (or are deemed to have made) an income access share election. In such circumstances, there will be no grossing up by Shire in respect of, and Old Shire and Shire will not compensate those Shire ordinary shareholders for, any adverse consequences including any Irish withholding tax consequences.<br /><br />In the year to December 31, 2009 Old Shire paid dividends totaling $45.9 million (2008: $7.2 million) on the income access share to the income access share trustee in an amount equal to the dividend Shire ordinary shareholders would have received from Shire.<br /><br />Exchangeable shares<br /><br />On February 12, 2008 a subsidiary of Shire exercised a redemption call right and purchased all remaining exchangeable shares of Shire Acquisition Inc. in public ownership. Exchangeable shareholders received either three ordinary shares of Shire plc or one Shire ADS representing three ordinary shares of Shire plc for each Exchangeable Share held. Exchangeable Shares were issued to Canadian resident shareholders of Biochem Pharma Inc. (now Shire Canada, Inc.) in 2001 as consideration for the acquisition by the Shire group of Biochem Pharma Inc. The Exchangeable Shares were delisted from the Toronto Stock Exchange during 2008.<br /></p></div>
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