Hello and welcome to TransLegal's lesson of the week. My name is Greg and today I'm here to talk to you about the term “nil paid”.
Now before I get into that, due to the popularity of these podcasts I've been getting stopped on the streets quite a bit, and people have come up to me and they say, "Hey, are you that guy from those legal English podcasts?"
And I'll say, "No, no, I'm not that guy. I'm just kidding, I am that guy!”
And then they'll say "Wow, man, love your podcast, they're so good"
And I'll say "Oh, stop it. – for real?"
And they'll say "Yeah, they're just like amazing, the best thing I've seen on the Internet like in the last five years."
And I'll say, "Oh my God, you're making me blush, I mean c'mon."
And they'll say, "No seriously, it's like better than any podcast I've ever watched."
And I'll be "Oh, you know…."
Alright, this conversation never actually happened, but this is how we would want it to happen if someone did recognise me on the street. So if you do see me on the street, just follow that script and we'll be fine.
Today's lesson is on “nil paid”. And “nil paid” refers to a security that is tradable but that the original owner did not pay anything for. The original owner incurred no costs associated with it.
By way of example, as a means of raising capital a company will offer shares to their existing shareholders at a discount. So it's either a right or an option to buy shares at a discount. Now the existing shareholders can sell these rights even though they are “nil paid”, meaning that the existing shareholders have not paid anything for these rights but they can nevertheless sell them to a third party.
So that's what is referred to when you talk about something being “nil paid”, nil meaning none, zero, no, nothing, nothing's been paid. And its use generally is as an adjective when you talk about nil paid rights in this context.
So, hopefully that clears this up. Again if you see me on the street, follow the script.
This has been TransLegal's lesson of the week. Feel free to leave comments in the spaces below. TransLegal… putting the Trans into Legal.. I'm going to have to work on the slogan…