Own Share Purchase (Capital) – Solvency Statement (Employees’ Share Scheme Purchase)
Own Share Purchase Out Of Capital – Solvency Statement for ESS Purchase
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 Capital – Guidance Notes" for more information.
This Own Share Purchase out of Capital – Solvency Statement for ESS Purchase is the statement of the solvency of the company given by the directors in the format prescribed by the Companies Act 2006 where a company wishes to purchase its own shares out of capital for the purposes of an employees’ share scheme (ESS). The use of a Solvency Statement (as opposed to the more stringent Directors’ Statement and Auditor’s Report) for purchases of shares for the purposes of an ESS was introduced in April 2013.
The Solvency Statement must be made available to the shareholders either when the written resolution is sent to each eligible member or at the general meeting of shareholders where the special resolution is approved.
This Own Share Purchase out of Capital – Solvency Statement for ESS Purchase is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes. If the company has only one director, then the wording relating to the sole director should be used.
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