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Please see page 18 for the Company’s performance

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This resulted in the Company’s earnings per share being

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Chair’s Statement

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performance can be found in the Portfolio Manager’s

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The Board was pleased to note the market’s SRVLWLYH

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announced the Company’s share price was trading on a

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KPMG has been the Company’s auditors for six years and

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of the Company’s shareholders as a whole.

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QRWLQWHQGWRVWDQGIRUUHelection at the Company’s AGM

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event can be found on the Company’s website at

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Chair’s Statement

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

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

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

Annual General Meeting (“AGM”)

This year’s Annual General Meeting (“AGM”) will be held at

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I described last year as "challenging” at the start of this

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(FRQRPLFDOO\WKHOffice for Budget Responsibility (“OBR”)

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conditions for our Manager’s DSSURDFKZKHUHWKH)RFXV

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confidence in the UK’s outlook.

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Bank of England’s decision to hold rates at 5.25% in

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Bank of England’s description of the likely profile of future

interest rates as “Table Mountain”

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return of 14.7%, reflecting investors’ preference for larger,

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Portfolio Manager’s Review

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Board’s priority of delivering sufficient income to cover the

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that will simultaneously enhance the portfolio’s income

prospects and diversify the portfolio’s income generation

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The Company’s net asset value (“NAV”) total return was

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This return was lower than that of the Company’s

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First, market conditions were not supportive for the Fund’s

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7KLVGUDJJHGon performance given the portfolio’s heavy

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WKHSRUWIROLR2ur portfolio’s exposure to the FTSE 100

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our confidence in management’s ability to achieve the

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to calculate a stock’s overall distribution yield, then it

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buybacks. We see the Company’s high yield as a function

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Portfolio Manager’s Review

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The Company’s objective is to provide shareholders with

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abrdn. The team within abrdn managing the Company’s

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meetings are used to ascertain the company’s own views

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The consequence of this is that the Company’s portfolio

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%) of the Company’s portfolio is invested

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view at a thematic level, concentrate the portfolio’s

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the Company’s shareholders. ESG factors are considered

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factors to understand their impact on a company’s 

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including MSCI and abrdn’s inhouse ESG rating tools the

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into underlying ESG performance, with the Company’s

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of companies’ strategies to improve sustainability

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examples of the Company’s engagement with investee

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to understand more about a company’s strategy and

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RUXQGHUPLQHthe Company’sLQYHVWPHQWFDVH

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The Board’s statement on pages WRGHVFULEHVKRZ

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Key Performance Indicators (“KPIs”)

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.3,

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Net Asset Value (“NAV”) Total Return

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The Company’s NAV Total Return relative to the FTSE All Share Index since 201LVVHW

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The Board compares the discount of the Company’s share price to its NAV when

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Retail Price Index (“RPI”) 

The Company’s objective is to provide shareholders with an above average income

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A breakdown of the Company’s dividend growth compared with RPI since 201LVVHW

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The Board monitors the Company’s ongoing charges ratio against prior years and

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has carried out a robust assessment of the Company’s

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Company’s investment portfolio of a changing climate

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Company’s shares are published monthly in the

Company’s factsheet and they can be found in the pre

investment disclosure document (“PIDD”) published by 

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Company’s website.

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the Company’s

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demand for the Company’s

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Company’s strategy, the performance of equity markets, the economic and political

environment, risks to the delivery of the Company’s strategy in light of the external

HQYLURQPHQWDQGthe discount/ premium at which the Company’s shares trade relative

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from the Company’s broker and updates from the Manager’s investor relations team

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The Board determines the Company’s dividend policy and approves the level of

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The Board oversees the Manager’s performance at each Board Meeting and formally

considers whether the Company’s strategy remains fit for purpose, in light of

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industry trends and the potential impact on the Company with the Company’s broker.

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–

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A formal appraisal of the Company’s main third party service providers is carried out

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The Board keeps the level of the Company’s discount / premium under review.

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The Company’s annual financial statements are audited by the independent auditor.

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Company’s shares. The Board believes one effective way

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Company’s financial contribution to the programme is

matched by abrdn. The Company also supports abrdn’s

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abrdn’s promotional and investor relations teams report to

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rating of the Company’s shares. Communicating the long

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The Board’s statement on diversity is set out in the

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considers the Company’s supply chains, dealing

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one of the Manager’s core principles as a business in how

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noted the Manager’s policy on social responsibility. The

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Company’s investments as part of its investment process.

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The Company’s objective is to deliver above average

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The Company is committed to the UK’s Stewardship Code,

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delivery of stewardship on the Company’s behalf. 

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by the investee companies within the Company’s portfolio.

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All of the Company’s activities are outsourced to third

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(Strategic Report and Directors’ Reports) 

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Disclosures (“TCFD”)

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Disclosures (“TCFD”).

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Company in accordance with the FCA’s rules and

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Manager’s TCFD inVFRSHEXVLQHVV7KHSURGXFWOHYHO

report on the Company is available on the Manager’s

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Taking into account the Company’s current financial

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· All of the Company’s investments are traded on 

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· The performance of the Company’s share price relative

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· The Company’s main liability is its bank loan of £2

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%) of the Company’s investment portfolio. This is a

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· The Company’ s cash balance, DQGPRQH\PDUNHW

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· Shareholders’ overwhelming voting in IDYRXURIWKH

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impact on the Company’s prospects and viability in the

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Taking into account all of these factors, the Company’s

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In assessing the Company’s future viability, the Board has

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exposure to the Company’s activities, in the form of a

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The Board is required to describe to the Company’s

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(the “Section 172 Statement”). This statement provides an

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Company’s operations on the environment.

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interests of the Company’s shareholders. The Board

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relating to the Company’s investment objective and

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and for monitoring the performance of the Company’s

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Company’s affairs, as well as visibility and openness in how

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The Board’s main stakeholders have been identified as its

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A summary of the Board’s approach to engagement with

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them. The Board welcomes all shareholders’ views and aims to act fairly to all shareholders. The Manager

and the Company’s broker regularly meet with current and prospective shareholders to discuss

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The Company subscribes to abrdn’s investor relations programme in order to maintain communication

channels with the Company’s shareholder base.

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Company’s website. 

The Company’s Annual General Meeting provides a forum, both formal and informal, for shareholders to

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as possible to attend the Company’s Annual General Meeting and to provide feedback on the Company.

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The Portfolio Manager’s Review on pages

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WKH\HDUThe Company has appointed AFML as the Company’s Manager, or AIFM, which subGHOHJDWHV

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The Manager has continued to manage the Company’s assets in accordance with the mandate

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The Board regularly reviews the Company’s performance against its investment objective and the Board

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effective oversight of the Manager and the Company’s strategy.

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6HUYLFH3URYLGHUV The Board seeks to maintain constructive relationships with the Company’s suppliers either directly or

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performance, terms and conditions of the Company’s main service providers to ensure they are

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proposed by the investee companies within the Company’s portfolio. The Manager reports on a

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Scotland International Limited, London Branch, the provider of the Company’s loan facility, and provides

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Environmental, Social and Governance (“ESG”) considerations into the research and analysis as part of

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Company’s stakeholders is not a new requirement and is

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and receives feedback on the Investment Manager’s

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an important factor in delivering the Company’s stated

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found on the Company’s website at

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As set out in the Chair’s Statement, the Board has

negotiated the Company’s Management Fee, on behalf of

the Company’s shareholders. With effect from 1 October

2023, the Company’s management fee is charged at

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when the Company’s net assets are below £175m

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access to a £30 million revolving credit facility (“RCF”), £21

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returns it achieves, which tend to be in excess of the “risk

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Chesnara’s existing UK business, Countrywide Assured,

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towards Chesnara’s business in the short term, we believe

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Board’s Policy on Tenure

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Director (“SID”) and the Chief Financial Officer, the positions of the Chief Executive and Chief Financial Officer are not

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Directors’ Report

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Directors’ and Officers’ Liability Insurance

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relief is granted. Directors’ and Officers’ liability insurance

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considers each Director’s situation and decides whether

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Director’s ability to act in accordance with his or her wider

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Company’s circumstances to prevent them. The Manager

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prevent bribery and corruption. Copies of the Manager’s

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Company’s shareholders for good governance and this

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Code as published in July 2018 (the “UK Code”), which is

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· executive directors’ remuneration (provisions 33 and 

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company. In particular, all of the Company’s dayWRGD\

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The full text of the Company’s Corporate Governance

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are available on the Company’s website, or upon request

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The Audit Committee’s Report is contained on pages 

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· determining the Directors’ remuneration policy and level

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As reported in the Chair’s Statement, it has been agreed

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The Company’s assets consist mainly of equity shares in

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Company’s level of gearing, cash flow projections and

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The Company’s Articles require that at every fifth AGM,

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

Directors’ Report

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

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DSSURYDORIWKLV5HSRUW7KH\KDYHDUULYHGDWWKLV

conclusion having confirmed that the Company’s

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this Directors’ Report confirm that, so far as they are each

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Company’s Auditor is unaware; and each Director has

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audit information and to establish that the Company’s

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as the Company’s Independent Auditor at the AGM on 

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As set out in the Chair’s Statement, following an audit

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&DUPLFKDHO//3as the Company’s Auditor for the year to

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Company through its website and the Manager’s

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The Board’s policy is to communicate directly with

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The Company’s Annual General Meeting provides a forum

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out in the Chair’s Statement onSDJH

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Where not provided elsewhere in the Directors’ Report, the

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out in the Directors’ Remuneration Report on pages WR

. The Company’s Articles of Association may only be

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Directors’ Report.

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As a result of the timing of the payment of the Company’s

quarterly dividends, the Company’s VKDUHKROGHUVDUH

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proposes to put the Company’s dividend policy to

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The Company’s dividend policy is that interim dividends on

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renew the Directors’ authority to allot new Ordinary shares

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renew the Directors’ existing authority to allot new

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shall expire at the conclusion of the Company’s next AGM

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Purchase of the Company’s Ordinary Shares 

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the Board’s authority to make market purchases of the

Company’s Ordinary shares in accordance with the

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FCA’s Listing Rules. Accordingly, the Company will seek

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purchase the Company’s Ordinary shares, unless to do so

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Directors’ Report

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General Meetings) on not less than 14 clear days’ notice,

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Companies (Shareholders’ Rights) Regulations 2009.

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the Company’s shareholders as a whole, and most likely to

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This Directors’ Remuneration Report comprises 

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Company law requires the Company’s Auditor to audit

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The Director’s Remuneration Policy and level of Directors’

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The Directors’ Remuneration Policy takes into

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and the AIC’s recommendations regarding the application

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from shareholders during the year regarding Directors’

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The Company’s policy is that the remuneration of the

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Directors’ Remuneration Report

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· Directors’ remuneration is not subject to any

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changes to the Directors’ Remuneration Policy during the

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basis and at last year’s meeting the Committee’s stated its

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Statement of Voting on the Directors’ Remuneration Policy

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shareholders approved the Directors’ Remuneration

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Review of Directors’ Fees 

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Committee carried out a review of the level of Directors’

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Directors’ remuneration.

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Statement of Voting on the Directors’ Remuneration 

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At the Company’s last Annual General Meeting, held on 

)HEUXDU\, shareholders approved the Directors’

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A resolution to approve the Directors’ Remuneration

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Directors’ Remuneration 

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The above amounts exclude any employers’ national

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Directors’ Remuneration Report

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Annual Percentage Change in Directors’ Remuneration

The following table sets out the annual percentage change in Directors’ fees for the past IRXU\HDUVIURP2FWREHU

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Directors’ Interests in the Company 

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There have been no changes to the Directors’ interests in

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· the major decisions on Directors’ remuneration;

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DQDQQXDOEDVLV&RSLHVRIWKHWHUPVRIUHIHUHQFHDUH

published on the Company’s website and are available

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The Committee’s main functions are listed below: 

· WRUHYLHZDQGPRQLWRUWKHLQWHUQDOFRQWUROV\VWHPVDQG

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ILQDQFLDOULVNVRQZKLFKWKH&RPSDQ\LVUHOLDQWWKH

Directors’ statement on the Company’s internal controls

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· WRFRQVLGHUZKHWKHUWKHUHLVDQHHGIRUWKH&RPSDQ\WR

KDYHLWVRZQLQWHUQDODXGLWIXQFWLRQ

· WRPRQLWRUWKHLQWHJULW\RIWKHKDOI\HDUO\DQGDQQXDO

ILQDQFLDOVWDWHPHQWVRIWKH&RPSDQ\DQGDQ\IRUPDO

announcements relating to the Company’s financial

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· WRUHYLHZDQGUHSRUWWRWKH%RDUGRQWKHVLJQLILFDQW

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connection with the preparation of the Company’s

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formal announcements relating to the Company’s

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· WRUHYLHZWKHFRQWHQWRIWKH$QQXDO5HSRUWDQGDGYLVH

WKH%RDUGRQZKHWKHUWDNHQDVDZKROHLWLVIDLU

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Company’s position and performance, business model

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· WRPHHWZLWKWKH$XGLWRUWRUHYLHZWKHSURSRVHGDXGLW

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&RPPLWWHHVKDOODOVRXVHWKLVDVDQRSSRUWXQLW\WR

DVVHVVWKHHIIHFWLYHQHVVRIWKHDXGLWSURFHVV

· WRGHYHORSDQGLPSOHPHQWSROLF\RQWKHHQJDJHPHQWRI

WKH$XGLWRUWRVXSSO\QRQDXGLWVHUYLFHV1RQDXGLWIHHV

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maintain the Auditor’s independence;

· WRUHYLHZDVWDWHPHQWIURPWKH0DQDJHUGHWDLOLQJWKH

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RWKHUPDWWHUV

· WRPDNHUHFRPPHQGDWLRQVWRWKH%RDUGLQUHODWLRQWR

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DQG

· to monitor and review the Auditor’s independence,

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Audit Committee’s Report

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

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

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Representatives of the Manager’s internal audit, risk and

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financial year. Please see the Chair’s Statement on page 

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identifying, evaluating and managing the Company’s

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reviewed by the Board and accords with the FRC’s

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and risk management is designed to meet the Company’s

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The Board has reviewed the Manager’s process for

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effectiveness of the Manager’s system of internal control

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Standards Board’s International Standard on Assurances

Engagements (“ISAE”) 3402, “Assurance Reports on

Controls at a Service Organisation”. Any weaknesses

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· ZULWWHQDJUHHPHQWVDUHLQSODFHZKLFKVSHFLILFDOO\

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· WKH%RDUGDQG0DQDJHUKDYHDJUHHGFOHDUO\GHILQHG

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Company’s activities and review its performance;

· as a matter of course the Manager’s internal audit 

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· WKH$XGLW&RPPLWWHHUHYLHZVLQWHUQDOFRQWUROUHSRUWV

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WRday management of the Company’s assets has been

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During its review of the Company’s financial statements

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Corporation UK Limited) (the “Depositary”) to hold the

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Committee. This provides details of the Depositary’s

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the independent Auditor, KPMG LLP (“KPMG”), including:

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The independent Auditor’s report is included on pages 

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Audit Committee’s Report

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Carmichael LLP (“Johnston Carmichael”)WRWKH%RDUGIRU

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the Company’s transactions and disclose with reasonable

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included on the Company’s website, but not for the

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· the Strategic Report and Directors’ Report include a fair

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Company’s position and performance, business model

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Statement of Directors’ Responsibilities

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We have audited the financial statements of abrdn Equity Income Trust plc (“the Company”) for the year ended 30

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· give a true and fair view of the state of the Company’s affairs as at 30 September 2023 and of its UHWXUQIRUWKH\HDU

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We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.

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The Company’s portfolio of quoted

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of the Company’s total assets (by YDOXH

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Independent Auditor’s Report to the 0HPEHUVRIDEUGQ

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£1,000 to Director’s remuneration, for which we believe misstatements of lesser amounts than materiality for the

Financial Statements as a whole could be reasonably expected to influence the Company’s members’ assessment of

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Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is

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ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going

concern period”). 

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risks to its business model and analysed how those risks might affect the Company’s financial resources or ability to

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Company’s available financial resources and its ability to operate over this period were:

· The impact of a significant reduction in the valuation of investments and the implications for the Company’s 

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Independent Auditor’s Report to the Members of abrdn

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· we consider that the Directors’ use of the going concern basis of accounting in the preparation of the financial

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· we have nothing material to add or draw attention to in relation to the Directors’ statement

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· the section of the annual report that describes the review of the effectiveness of the Company’s risk management and

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fraud or error; assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related

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Auditor’s Responsibilities

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material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable

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This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the

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based on the Company’s equity portfolio held at each year end.

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Liquidity risk is not considered to be significant as the Company’s assets comprise mainly readily realisable securities,

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None of the Company’s financial assets is past due or impaired.

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nature and planned level of gearing, which takes account of the Manager’s views on the market and the extent to which

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considered to be related party transactions and are disclosed within the Directors’ Remuneration Report on pages 56 and 57.

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October 2023, the Company’s management fee will be charged at a flat fee of 0.55% per annum of the Company’s net assets.

Prior to 1 October 2023, the Company’s management fee was charged at a rate of 0.65% per annum of net assets up to £175

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This provides access to information on the Company’s

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Key Information Document (“KID”)

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Manager can be found on the Company’s website. 

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The Company’s shares are intended for investors,

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accordance with the Financial Conduct Authority’s rules in

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The Company’s securities are excluded from the Financial

Conduct Authority’s restrictions which apply to NMPIs

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shares, the market maker’s spread.

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abrdn Fund Managers Limited (“AFML”), is a wholly owned

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manager (“AIFM”) for the Company. AFML is authorised

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the UK’s departure from the EU. The AIFMD was originally

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framework for regulating managers of ‘alternative

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Numerical measures of the Company’s current, historical

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financial framework. The Company’s applicable financial

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custody and safeguarding of the Company’s financial

instruments and monitoring the Company’s compliance

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Company’s Depositary is BNP Paribas Trust Corporation

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cash and cash equivalents by Shareholders’ Funds,

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Products (“PRIIPS”) Regulation requires the Manager, as

the Company’s PRIIP ‘manufacturer’, to prepare a Key

Information Document (“KID”) in respect of the Company.

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and is available via the Company’s website. The Company

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which increases the Company’s exposure, including the

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expressed as a ratio between the Company’s exposure

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exposure represents the sum of the Company’s positions

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The Company’s Portfolio Manager is Thomas Moore.

Thomas has managed the Company’s portfolio, on behalf

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(“PIDD”)

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found on the Company’s website.

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stock market’s view of a company’s prospects and profit

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DEUGQ)XQG0DQDJHUVLimited (“AFML”) and the Company are required to make certain disclosures available to

investors in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”). Those disclosures that are

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found on the Company’s website.

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· none of the Company’s assets are subject to special arrangements arising from their illiquid nature;

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accordance with the Remuneration Code, the AIFM’s remuneration policy is available from the Company Secretary,

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127,&(,6+(5(%<*,9(1WKDWWKHWKLUW\VHFRQGAnnual General Meeting of abrdn Equity Income Trust plc (“the

Company”) will be held at ZDOODFHVSDFH6SLWDOILHOGV$UWLOOHU\/DQH/RQGRQ(+$RQ7XHVGD\)HEUXDU\

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 To receive and adopt the Directors’ Report and financial statements of the Company for the year ended 30

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 To receive and approve the Directors’ Remuneration Report for the year ended 30 September 20

 To approve the Company’s dividend policy to pay four interim dividends per annum.

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unconditionally authorised in accordance with Section 551 of the Companies Act 2006 (the “Act”) to exercise all the

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security into shares in the Company (“Securities”) provided that such authority shall be limited to the allotment of

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unconditionally authorised in accordance with Section 701 of the Companies Act 2006 (the “Act”) to make market

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Company (the “Shares”) either for retention as treasury shares for future reissue, resale or transfer, or for

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audit of the Company’s accounts (including the Auditor’s report and the conduct of the audit) that are to be laid

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