Subjects:

Company Law

Contents:

Introduction

The rule against own share acquisitions

Shares held by a company's nominees

The issue of redeemable shares

A company's power to purchase its own shares

The procedure for an own share purchase

The source of the payment for a purchase or redemption

Treasury shares

Own share purchases and the articles

Own share purchase contracts

Financial assistance

Tax: the 'distribution' element

Purchases for the benefit of the trade

Payments to assist in discharging a liability to inheritance tax

S 219: Returns, clearances and powers of information

Purchases from a dealer in securities

Taxes on income: other consequences of purchases and redemptions

Other fiscal consequences

Strategy

The law relating to the acquisition by a company of its own shares has always been a highly complex area. This book provides full details of the procedures to be followed, what the tax implications are, and how tax savings and other benefits can be achieved. It will also include various precedents for contracts, director's reports, company resolutions and letters of application.

The book will take full account of important developments such as Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 (SI 2003/1116) and Companies (Acquisition of Own Shares) (Treasury Shares) No 2 Regulations 2003 (SI 2003/3031). These regulations came into force on 1st December 2003, relaxing the rules for certain types of company when purchasing their own shares. The introduction of these regulations has necessitated numerous technical changes to company law.