Introduction to the purchase of own shares

Companies are permitted under Companies Act 2006 (subscription sensitive) to repurchase their own shares. This is sometimes referred to as a 'buy back'. Prior to 30 April 2013, repurchased shares were required to be cancelled unless the company was a listed company. From 1 May 2013, any limited company may retain shares with a view to reselling them or for disposal through an employee share scheme. These shares are called 'Treasury shares' and are dealt with in the Treasury shares guidance note.

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