Search results for ''...


Sorry, there were no results

Get In Touch

By submitting an enquiry through 'get in touch' your data will only be used to contact you regarding your enquiry. If you would like to receive newsletters from Thomson Snell & Passmore please use the separate form below.

Newsletter Sign Up

'For you' Newsletter'For your business' NewsletterConstruction LawThe DeputyTotaland Law Agriculture & RuralTotaland Law Development & PlanningTotaland Law GeneralTotaland Law Landlord & TenantTotaland Law Property & Finance Workplace Law
I agree to be 'opted in' to receive the Thomson Snell & Passmore communications I have selected above. I understand that this means they will send me relevant content based on the options I have selected. \n\n If you do not wish to receive promotional material from Thomson Snell & Passmore please contact us using the following link: info@ts-p.co.uk

Get In Touch

By submitting an enquiry through 'get in touch' your data will only be used to contact you regarding your enquiry. If you would like to receive newsletters from Thomson Snell & Passmore please use the separate form below.

Newsletter Sign Up

'For you' Newsletter'For your business' NewsletterConstruction LawThe DeputyTotaland Law Agriculture & RuralTotaland Law Development & PlanningTotaland Law GeneralTotaland Law Landlord & TenantTotaland Law Property & Finance Workplace Law
I agree to be 'opted in' to receive the Thomson Snell & Passmore communications I have selected above. I understand that this means they will send me relevant content based on the options I have selected. \n\n If you do not wish to receive promotional material from Thomson Snell & Passmore please contact us using the following link: info@ts-p.co.uk
  • Overview

    By James Partridge, Partner. Contact Thomson Snell and Passmore 01892 510000.

    Treasury shares are shares that a company holds in itself which have been bought back from a shareholder.

    The regime for the buyback by a company of its own shares changed on 30 April 2013. Private companies and unlisted companies can now hold their shares in treasury. Prior to then, only public listed public companies could buyback their shares and hold them as treasury shares.

    However, it is important to note that a company cannot exercise any rights in respect of treasury shares. Consequently, voting rights are suspended (as are dividend payments) when shares are held in treasury.

    The new regime provides private companies with the ability to warehouse shares. This could be particularly helpful for private equity backed companies where a key employee with an equity stake leaves the business before a successor has been identified. In such circumstances, the company could hold the shares until the new employee joins and the shares are transferred to him or her.

    Prior to the introduction of the new regime, companies would typically only buy back shares out of distributable profits. Effectively, this precluded heavily indebted and most young companies from buying shares in, due to the absence of distributable profits.

    Subject to including appropriate provisions within a company’s articles of association, the new regime also allows for a company without distributable profits to buy back shares in cash up to the lower amount of £15,000 in any financial year or 5 per cent of the company’s issued share capital.

  • Related Services

    Commercial

    We draw on our extensive legal, commercial and industry expertise when working with you to achieve your strategic objectives.

    Corporate

    Our award winning team of corporate lawyers provide highly practical advice to help businesses of all sizes develop and grow.    

Get In Touch

By submitting an enquiry through 'get in touch' your data will only be used to contact you regarding your enquiry. If you would like to receive newsletters from Thomson Snell & Passmore please use the separate form below.

Newsletter Sign Up

'For you' Newsletter'For your business' NewsletterConstruction LawThe DeputyTotaland Law Agriculture & RuralTotaland Law Development & PlanningTotaland Law GeneralTotaland Law Landlord & TenantTotaland Law Property & Finance Workplace Law
I agree to be 'opted in' to receive the Thomson Snell & Passmore communications I have selected above. I understand that this means they will send me relevant content based on the options I have selected. \n\n If you do not wish to receive promotional material from Thomson Snell & Passmore please contact us using the following link: info@ts-p.co.uk
^
Jargon Buster