Companies House Form SH06 - Notice Of Cancellation Of Shares
A purchase of own shares is when a company purchases shares in itself from an existing shareholder and the shares purchased are not redeemable shares. Please see "Own Share Purchase Out of Profits/New Share Issue/Cash – Guidance Notes" for more information.
There are several conditions that a private company must fulfil in order to be able to purchase its own shares.
Once the shares have been purchased, they may be held as treasury shares if they were purchased using distributable profits. Since 6th April 2015, any shares purchased from cash are no longer capable of being held in treasury and therefore must be cancelled.
Shares not to be held as treasury shares they will be treated as cancelled and Form SH06 - Notice of Cancellation of Shares must be filed with the Registrar of Companies within 28 days of the purchase. Failure to do so is an offence and the company and any officer of the company in default is liable to a fine if found guilty.
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