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.
THE BUYBACK CONTRACTThe contents of the buyback contract and the requirement of shareholder approval. Read more
SHARE BUYBACK PROCEDUREA summary of the procedure where shares are purchased out of profits or a fresh issue of shares. Read more
POST BUYBACKWhat 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.
Click to reveal some notes to our guide.
- 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.