A purchase of own shares occurs when a company purchases shares in itself from an existing shareholder and the shares purchased are not redeemable shares.
The Own Share Purchase out of Capital Sub-folder contains forms, guidance notes and written and board resolutions for purchasing shares out of capital. The documents are designed for the procedures that must be followed by private limited companies in order to purchase their shares out of capital, the so called “off market purchase”, and do not deal with public companies (market purchase).
Each document in the Own Share Purchase out of Capital Sub-folder is fully compliant with the Companies Act 2006 and the documents reflect the April 2013 Regulations.
Certain template documents in this subfolder have been updated to reflect the minor changes made to the share buyback process by the Companies Act 2006 (Amendment of Part 18) Regulations 2015 introduced on 6th April 2015. The 2015 Regulations clarify the operation of certain provisions of the Companies Act 2006 introduced by the April 2013 Regulations. As the changes are minor points of legal clarification, only certain templates in this subfolder have required updating.