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ARTICLE · 31 MARCH 2004

Treasury Shares

Barlow Lyde & Gilbert LLP
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When companies used to buy back their own shares under the Companies Act 1985, such shares had to be cancelled immediately and the share capital consequentially reduced. The introduction of the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 [SI 2003/1116] (the "Regulations") on 1 December 2003 has enabled certain companies to hold such shares in treasury for resale without can

United KingdomEmployment and HR
Sarah Owen
Sarah Owen

When companies used to buy back their own shares under the Companies Act 1985, such shares had to be cancelled immediately and the share capital consequentially reduced. The introduction of the Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 [SI 2003/1116] (the "Regulations") on 1 December 2003 has enabled certain companies to hold such shares in treasury for resale without cancelling them.

Introduction

It is hoped that treasury shares will give these companies greater flexibility in managing their share capital and should help them reduce the cost of raising new capital by enabling them to sell shares from treasury via a broker and, therefore, avoiding the costs of a new issue of shares.

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