HELPING BUSINESSES TO COMPLY WITH THEIR LEGAL OBLIGATIONS

SHARE BUYBACK GUIDE



This guide is written in respect of share buybacks by private limited companies and unlisted public limited companies incorporated in the United Kingdom. Click on one of the boxes below for further information.

WHAT IS A SHARE BUYBACK?

A brief outline. Read more

WHY BUYBACK SHARES?

Why do companies buy back their shares? Read more
 

FUNDING A BUYBACK

What funds can a company use to purchase its own shares? Read more

THE BUYBACK CONTRACT

The contents of the buyback contract and the requirement of shareholder approval. Read more
 

PRELIMINARY CONSIDERATIONS

Points to consider before effecting a buyback. Read more

SHARE BUYBACK PROCEDURE

A summary of the procedure where shares are purchased out of profits or a fresh issue of shares. Read more
 

POST BUYBACK

What happens to the purchased shares and steps to be taken after the purchase. Read more
 

Buyback out of capital

The following two sections detail the additional procedural requirements when purchasing shares out of capital.

FUNDING A BUYBACK OUT OF CAPITAL

A summary of the additional procedural requirements. Read more

DIRECTORS' STATEMENT AUDITORS REPORT

The form and content of the statement and report. Read more

Click to reveal some notes to our guide.

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  • Please note that this guide does not consider 'on market' buybacks, being a purchase by a public company of its own shares which are:

    • listed on a recognised exchange; or
    • where the relevant shares are subject to a marketing arrangement on an exchange.

  • When considering a share buyback please also consider whether a reduction of share capital would be more suitable to achieve your aims.
  • This guide does not consider a buyback of shares into Treasury.




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