The following Tax practice note provides comprehensive and up to date legal information covering:
A limited company may buy back shares that it has in issue, provided certain conditions set out in the Companies Act 2006 (CA 2006) are met. This is known as a share buyback or a purchase of own shares. In addition to the CA 2006 provisions, there are other rules and guidelines that apply to listed or AIM companies. In particular, a listed company must have regard to the Listing Rules and the Disclosure Guidance and Transparency Rules, and an AIM company, the AIM Rules. Both types of companies may also need to take institutional investor guidelines into account.
The restrictions on buybacks that are contained in CA 2006 do not apply to unlimited companies.
Companies carry out share buybacks for a variety of reasons. One reason might be to return surplus cash to shareholders that does not have a specific purpose and cannot be invested to produce a return greater than the cost of capital.
For other reasons why a company might consider doing a share buyback, see Practice Note: Share buybacks—the legal framework—Why buy back shares?
A 'tender offer' is an offer made by, or on behalf of, a company to its current shareholders in relation to its own shares. In making a tender offer, a company gives its shareholders the opportunity
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The Standard Conditions of Sale (SCS), currently in their 5th edition (2018 revision), are a set of standard conditions which are commonly incorporated into contracts for the sale of residential property. The Standard Commercial Property Conditions (Third Edition—2018 Revision) (SCPC) are used for
Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. For guidance, see Practice Note: Coronavirus
Fraud by false representationFraud by false representation applies to a broader range of conduct than the offences under the preceding legislation (the Theft Act 1968 (TA 1968)). No gain or loss need actually be made, and no deception need operate on the mind of the deceived for the Fraud Act 2006
This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.You should also consider if the proceedings will be
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