Private Companies and Buying Shares
1 October 2009 was an important date for the private limited companies who wished to buy back its own shares. Importantly private limited companies must comply with Section 658 under Part 18 of the 2006 Act. It is essential to note that private companies have the ability to fund its own the shares purchases from its own capital but public companies do not. Section 693 allows private limited companies two different forums when making purchases. On market and Off market. While off market purchases are available to both private and public companies, market purchases are only available to certain public companies.
Case Law on company buy backs.
As always there is a significant amount of case law which determines how English law treats the buyback of shares. Two useful cases to review on company buy backs are RW Peak (Kings Lynn) Ltd  1 BCLC 199 and Dashfield v Davidson  BCC 222
Michael Coyle is a Solicitor Advocate and can be contacted at firstname.lastname@example.org or on his mobile 07976 724258 or via the Southampton office on 02380 235979.