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.

This publication was withdrawn on

This guidance is no longer current and is being updated.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

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. HMRC tax guidance on employee ownership link added.
  2. First published.