Statement Of Directors under Section 720B(5)

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.

Please see “Own Share Purchase out of Capital - Guidance Notes” for more information.

Use this statement where an ESS buyback is authorised

This Statement of Directors under Section 720B(5) has been included in this folder to reflect the April 2013 changes to the Companies Act 2006, notably the introduction of a separate, simpler procedure for approving the use of capital where the purchase of own shares is for the purposes of an employees’ share scheme.

When the statement must be sent to Companies House

If a resolution has been passed authorising shares to be purchased for the purposes of an employees’ share scheme, the Statement under Section 720B(5) must be completed and sent to Companies House under cover of the 1st Letter to Companies House (ESS).

Statement Of Directors under Section 720B(5) is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.