Guidance

Employee ownership and share buy backs: guide to Companies Act Regulations

Explains changes to the share buy backs regulations, and how to implement these changes to encourage employee ownership.

• From: Department for Business, Innovation & Skills
• Published: 18 November 2013
• Last updated: 27 November 2013 — See all updates

This publication was withdrawn on 15 January 2016

This guidance is no longer current and is being updated. In the meantime you can email questions to edward.greatrex@bis.gsi.gov.uk.

Documents

Employee ownership and share buy backs: simple guide to Companies Act 2006 (Amendment of Part 18) Regulations 2013 and 2015

Ref: BIS/15/288

PDF, 115 KB, 17 pages

Details

Guidance that explains the changes to the share buy backs regulations within the Companies Act 2006 (Amendment of Part 18) Regulations 2013 and 2015. It is intended for businesses and their representatives, to help them to understand and implement these changes.

The regulations implement recommendation V from the ‘Nuttall Review of Employee Ownership’, to make direct employee ownership more appealing and less burdensome to administer.

The changes make it easier for companies that wish to pursue direct employee ownership to buy back shares from employees that leave the company. This helps companies to avoid the dilution of share ownership outside their company.

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.

Published 18 November 2013
Last updated 27 November 2013 + show all updates

1. 27 November 2013

   HMRC tax guidance on employee ownership link added.

2. 18 November 2013

   First published.