Private Company Share Buybacks - Spotting & Avoiding Problems

Introduction

Share buybacks can be a neat and simple solution to a variety of challenges for private companies - for example, if a shareholder wants out, or there’s a shareholder row or a death in the company. They put money in the hands of outgoing shareholders and leave the remaining shareholders in control - and tax liabilities can be reduced if the circumstances are right.

But the company has to be able to fund the purchase, there can be constitutional obstacles to negotiate, shareholder approval is needed, duty may be payable and the rules contain a number of traps for the unwary, particularly in the area of payment for the shares.

This virtual classroom session will guide you through the buyback rules, providing practical help on spotting and avoiding the problems that can crop up.

What You Will Learn

This live and interactive session will cover the following:

• Challenges solved by a share buyback
• What the company looks like before and afterwards
• Tax treatment summary
• Types of buyback - off-market v on-market
• Funds you can use, including the small cash payment exception
• Special rules where the buyback is for an employee share scheme
• What the company’s constitution says - do you care?
• Pre-buyback checks, and the buyback agreement
• The procedure - traps to watch out for
• Payment issues
• Cash
• Assets?
• Instalments - or not!
• Filing at Companies House and other follow-up tasks

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.