Form SH06 - Notice of Cancellation of Shares
CHF - 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. Note that with effect from
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 will be treated as cancelled and
Form SH06 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.
This document is in PDF format and the up to date version of it can be
found on the Companies House website by clicking on this link to the