No Par Value

No Par Value

No Par Value, no nominal value. Shares of no par value have been issued in the U.S.A., Canada and Belgium for many years, but not in Britain. Gradually over recent years the drawbacks of a par value, that it is meaningless in a period of changing price levels and may bear no relation to the value of the capital employed, have become more obvious, and the George Committee was appointed in 2002 to consider whether the Companies Act should be amended. The Committee recommended in a majority report that shares of no par value be allowed at a company's option, but the recommendation was not extended to preference shares.

No par value shares represent a fractional part of the equity or capital employed. Their use would make the issue of bonus shares unnecessary.

Nominal Wages, money wages as distinct from 'real' wages , the amount of goods and services that wages will buy. The distinction is important in periods of changing prices because nominal wages will diverge from real wages .

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