Corporate

Support with a Share Buyback

Tackle share buybacks with tried and tested legal experts.

Share buybacks are a common strategy used by businesses seeking to return shares to the business. Whether that’s to increase share prices or to secure shares from a departing shareholder, share buybacks are an important part of running a business.

However, share buybacks are deceptively complex and there are specific steps to be followed (and to be carried out after the buyback). Aside from claiming time and resource, a poorly managed share buyback can result in a null and void transaction and an offence being committed by the company and every director. We work with companies to ensure their share buyback is a success.

Why a share buyback is used

Departing shareholders

Many shareholders will in fact be employees of the business, but what happens when a shareholder leaves? Do they take their shares with them? A share buyback allows the business to reclaim shares from departing shareholders, allowing for the distribution of shares to future hires.

Retain control

When a shareholder is exiting there is often no market for those shares (i.e., they can’t find a buyer) and also the company (its existing shareholders) will likely want to retain control. However, the existing shareholders may not be able to afford to finance the purchase – which is where a share buyback comes in.

Increase share price

At times, a share buyback is used to boost the share price of a business - thereby boosting the return for existing shareholders.

Articles of Association

Articles of Association can be thought of as the governing constitution of a business. However, when it comes to share buybacks, you’ll need to ensure that your Articles of Association do not prohibit the buyback or permit the buyback - depending on the context of how the buyback is being financed.

How to get started

Who this can affect

Don't take our word for it

We currently use Stephenson's for our small business and have had a great experience! They are knowledgeable, professional and answer in a timely fashion. Would recommend!

Angie Allgood | CMO | SmashCo

Dig deeper

Sharing the Love of How Shares Work

Sharing the Love of How Shares Work

Shareholders Agreements: Why They Matter

Shareholders Agreements: Why They Matter

How to Choose the Right Legal Partner

How to Choose the Right Legal Partner

Stephenson Law logo

About us

We’re the trusted partner of countless fast-growth companies seeking to leverage shares. From tax advantageous schemes to incentivising growing teams, we help you address the options available.

Support with a Share Buyback

Tackle share buybacks with tried and tested legal experts.

Share buybacks are a common strategy used by businesses seeking to return shares to the business. Whether that’s to increase share prices or to secure shares from a departing shareholder, share buybacks are an important part of running a business.

However, share buybacks are deceptively complex and there are specific steps to be followed (and to be carried out after the buyback). Aside from claiming time and resource, a poorly managed share buyback can result in a null and void transaction and an offence being committed by the company and every director. We work with companies to ensure their share buyback is a success.

Why a share buyback is used

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Departing shareholders

Many shareholders will in fact be employees of the business, but what happens when a shareholder leaves? Do they take their shares with them? A share buyback allows the business to reclaim shares from departing shareholders, allowing for the distribution of shares to future hires.

Retain control

When a shareholder is exiting there is often no market for those shares (i.e., they can’t find a buyer) and also the company (its existing shareholders) will likely want to retain control. However, the existing shareholders may not be able to afford to finance the purchase – which is where a share buyback comes in.

Increase share price

At times, a share buyback is used to boost the share price of a business - thereby boosting the return for existing shareholders.

Articles of Association

Articles of Association can be thought of as the governing constitution of a business. However, when it comes to share buybacks, you’ll need to ensure that your Articles of Association do not prohibit the buyback or permit the buyback - depending on the context of how the buyback is being financed.

Don't take our word for it

We currently use Stephenson's for our small business and have had a great experience! They are knowledgeable, professional and answer in a timely fashion. Would recommend!

Angie Allgood | CMO | SmashCo
Stephenson Law logo

About us:

We’re the trusted partner of countless fast-growth companies seeking to leverage shares. From tax advantageous schemes to incentivising growing teams, we help you address the options available.