Own Share Purchase Out Of Capital - Contract To Purchase
Companies may wish to "buy back" or purchase their own shares.
This Own Share Purchase out of Capital - Contract to Purchase is for a private company wishing to purchase its own shares using capital. It should be read in conjunction with "Own Share Purchase out of Capital - Guidance Notes."
In order for a private limited company to purchase its own
This Own Share Purchase out of Capital - Contract to Purchase contains the following Clauses:
2. Sale and Purchase of Sale Shares
3. Representations and Warranties of the Vendors
4. Representations and Warranties of the Purchaser
6. Notice Details
This contract is in open format. The document contains fields which must be completed. It also contains some wording options in square brackets which must be adjusted to suit your purposes.
The company purchasing the shares will be the Purchaser and its details will need to be completed
The nominal value of the share referred to in Recitals A and B is the value of each share on the share certificate. This may be only a small amount (e.g. 1p, 10p or £1) and may be considerably less than the price paid per share. If the price paid per share is more than the nominal value, then the balance is referred to as the premium.
If the Vendor is a corporate body, then clause 3.4 should be retained,
Details for giving notice to each of the parties to the contract should be inserted at clause 6.
The share capital of the company purchasing its own shares immediately before completion of the sale and purchase should be inserted at Schedule II and the share capital of the company purchasing its own shares immediately after completion of the sale and purchase should be inserted at Schedule III.
This Contract to Purchase has been updated to reflect the April 2013 changes to the Companies Act 2006, notably the move from special resolution to ordinary resolution for approval of the Contract.
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