Buying back shares from existing shareholders

A share buybackThis is where a company buys its own shares from one or more of its shareholders. A share buyback is prohibited unless a specific legal exception applies. If an exception does apply a prescribed set of rules must be followed otherwise the buyback is invalid. occurs when your companyA private company limited by shares incorporated and registered in England and Wales. buys its own sharesShares in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. from one or more of its shareholdersIn relation to a company limited by shares, means persons whose names have been entered in the register of members of that company as shareholders in that company.. Your companyA private company limited by shares incorporated and registered in England and Wales. must follow a strict and complex legal process in order to carry out a share buybackThis is where a company buys its own shares from one or more of its shareholders. A share buyback is prohibited unless a specific legal exception applies. If an exception does apply a prescribed set of rules must be followed otherwise the buyback is invalid., and separate advice from tax advisers and accountants should be obtained. This section contains an explanation of when your companyA private company limited by shares incorporated and registered in England and Wales. might want to consider a share buybackThis is where a company buys its own shares from one or more of its shareholders. A share buyback is prohibited unless a specific legal exception applies. If an exception does apply a prescribed set of rules must be followed otherwise the buyback is invalid., and an introduction to the legal process your companyA private company limited by shares incorporated and registered in England and Wales. will need to follow to buy its own sharesShares in the capital of a company (sometimes also referred to as stock, for example in relation to US companies). Shares in a company give to the holders, known as shareholders, rights in relation to that company such as to vote, to receive dividends and to a return of capital. Holders of shares in a company own that company and the company, not its shareholders, owns the company's assets. .