Consultation outcome

Employee ownership and share buy backs: implementing Nuttall Review recommendations

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

This consultation has concluded

Download the full outcome

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.

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
to

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

Published 30 October 2012
Last updated 27 November 2013 + show all updates
  1. Link to HMRC tax guidance on employee ownership added to final outcome.
  2. Added link to the relevant Statutory Instrument: The Companies Act 2006 (Amendment of Part 18) Regulations 2013.
  3. Final stage impact assessment published.
  4. Government response published 15 February 2013.
  5. Added minutes of the Implementation group on employee ownership meeting on 27 Nov 2012
  6. First published.