Consultation outcome

Employee ownership and share buy backs: implementing Nuttall Review recommendations

• From: Department for Business, Innovation & Skills
• Published: 30 October 2012
• Last updated: 27 November 2013 — See all updates

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Read the full outcome

Employee ownership and share buy backs: implementation of Nuttall Review Recommendation V - government response to consultation

Ref: BIS/13/590

PDF, 222 KB, 21 pages

Employee ownership and share buy backs: final stage impact assessment

Ref: BIS/13/766

PDF, 150 KB, 10 pages

Detail of outcome

Following this consultation the government took forward the existing proposals and some additional deregulatory changes.

The Companies Act 2006 (Amendment of Part 18) Regulations 2013 that give effect to these changes came into force on 30 April 2013.

We have published a simple guide ‘Employee Ownership and Share Buy Backs: Guide to Companies Act Regulations’ to explain these changes and how the regulations work.

We will carry out a post-implementation review 3 years after the Regulations came into force.

HM Revenue and Customs have produced tax guidance on the main issues relating to share buy backs. This guidance can be found at HMRC tax guidance on employee ownership.

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Original consultation

Summary

Consults on a recommendation to deregulate how companies authorise share buy backs, finance share buy backs, and hold shares 'in treasury'.

This consultation ran from
30 October 2012 to 11:45pm on 16 November 2012

Consultation description

The ‘Nuttall Review on Employee Ownership’ recommended (recommendation V) that the government should review and consult on changes to deregulate the conditions under which companies can:

• authorise share buy backs
• finance share buy backs
• and hold shares ‘in treasury’

This consultation seeks views on deregulatory changes to simplify how private companies may authorise and finance the repurchase of its own shares, and hold these shares in treasury once repurchased. We want to understand the possible implications for companies, employees, and other stakeholders, and to ensure that there are no unintended consequences. The draft regulations attached show the legislative changes that would be needed.

Documents

Employee ownership and share buy backs: consultation on implementation of Nuttall Review recommendations

Ref: BIS/12/1162

PDF, 158 KB, 20 pages

Employee ownership and share buy backs: consultation stage impact assessment

Ref: BIS/12/1165

PDF, 132 KB, 9 pages

Draft Statutory Instrument: The Companies Act 2006 (Amendment of Part 18) Regulations 2013

Ref: BIS/12/1248

PDF, 51 KB, 3 pages

Published 30 October 2012
Last updated 27 November 2013 + show all updates

1. 27 November 2013

   Link to HMRC tax guidance on employee ownership added to final outcome.

2. 3 May 2013

   Added link to the relevant Statutory Instrument: The Companies Act 2006 (Amendment of Part 18) Regulations 2013.

3. 4 April 2013

   Final stage impact assessment published.

4. 15 February 2013

   Government response published 15 February 2013.

5. 31 December 2012

   Added minutes of the Implementation group on employee ownership meeting on 27 Nov 2012

6. 30 October 2012

   First published.