Business Legal Services
Share Buybacks
Get the legal support you need to ensure that your share buyback is effective and remains valid.
Get the company share buyback process right from the beginning to avoid future complications such as fines or even the share buyback itself being declared void. Our corporate experts can help you create and execute a share buyback process that works for you.
Experts in corporate law
Our team can assist you across all areas of corporate law, including:
Advising on the share buyback that is right for your business
Our team of corporate solicitors can support you with:
Advice on which type of share buyback is appropriate
This will largely depend on whether your business is a private limited company, a public unlisted company or a public company with shares traded on UK or certain other markets.
Defining what your share buyback scheme should look like
We’ll establish whether your business needs to comply with Part 18 of the Companies Act 2006, or whether any rules by investor bodies or market regulations need to be taken into account.
Checking your company’s articles of association
We’ll make sure that your proposed share buyback is permitted by your company’s corporate governance rules and assess what levels of approval are required by the company’s management and shareholders.
Checking pre-emption rights
We’ll verify any pre-emption rights that have been given to other shareholders that will need to be waived before the share buyback can occur.
Drafting the necessary documentation
We’ll ensure the share buyback properly complies with legal regulations and that your business does not become liable for fines.
Advice on the appropriate timetable and series of events
We’ll make sure that the process is not open to dispute, has received the necessary approvals and complies with all applicable legislation, including giving adequate notice and other timings.
Guidance on financial options
We’ll provide you with options that are legally available to your business so that you can assess how best to fund the share buyback.
Guidance on documentation
We’ll advise on what needs to be sent to shareholders for review and where documents need to be available for inspection, including the procedure for circulating an off-market buyback contract or a shareholder circular for public companies with a premium listing.
Assistance with filings
We’ll prepare and submit the necessary filings with Companies House and update the register of members of the company.
Buyback of shares procedure
Getting the right legal support with the planning and execution of a company share buyback can help you avoid common pitfalls and get the business essentials right, first time.
Working with you to understand your business needs, we will help you answer the following questions when undertaking a share buyback so that it’s valid and meets the needs of your business:
- What type of company is your business – is it private, public, listed or traded for example?
- Will your share buyback scheme be market or off-market?
- How will your share buyback be funded – out of your company’s distributable profits or a new share issue for example?
- For private limited companies, will your share buyback be funded out of your company’s capital or cash?
- Is the share buyback in the best interests of the company and its shareholders?
- Are the shareholders likely to unanimously consent to the share buyback?
- How will the shares that have been bought by the company be held?
Share buyback benefits
Increase earnings per share
Increase the earnings per share with a company share buyback, helping to benefit the valuation of those shares (particularly for traded and listed companies) and to encourage investors’ support.
Support the share price
Buy shares when there is little demand for them in the market, then resell them at the right time. Organise a share buyback once the market improves and the share price increases to a value that the company believes better represents the business.
Effectively deal with shares held by employees
Give employees that no longer work for the company a clean break by way of a share buyback. Recent legislation has made it easier and simpler for a company to buy back shares from employee share schemes, helping you to neatly wrap up an employment relationship.
Help your shareholders with strategic decisions
Utilise a share buyback if shareholders wish to leave your business, fostering goodwill between the parties should you need to continue to have a relationship following the shareholder’s exit. For the remaining shareholders, there is also comfort in maintaining the status quo as no new and potentially unknown shareholder will be joining the remaining shareholders.
Who we help: private and public companies
We support UK-based, public and private companies in commercial businesses that are looking to explore the benefits of a share buyback. We advise clients of all types, from start-ups to scale-ups and established market players.
Testimonials
What our clients say
Why choose Harper James Solicitors?
We can assist you with strategic analysis of your proposed share buyback, provide you with well-drafted documentation and help you establish a clear and compliant timetable for the share buyback procedure. Our corporate solicitors have a wealth of experience in share buybacks for both public and private UK-based companies.
In addition, the Harper James team can extend its expertise to you to support your business further. We understand that your legal requirements don’t just stop with a share buyback. That’s why we offer a fully integrated service to our clients across every area of law that your business will need to scale. From intellectual property assignment, to drafting commercial agreements, providing dispute resolution services and much more, you can rely on our strategically minded solicitors to support your business as it grows.
Plus, we have all been recruited from top 100 UK law firms or from large international businesses and have advised clients both as external advisors and as in-house corporate counsel. Find out more about the team here:
Pricing and service plans
Legal support designed
to fit your business needs
Our three transparent service plans are designed to give you the widest possible access to high-quality legal advice, whatever the size and nature of your business:
Engage
Flexible access to senior solicitors at highly competitive rates
An alternative to our subscription plans, offering access to full service legal expertise on a project-by-project basis.
Enable
Purpose built legal support for start-ups and smaller businesses
Monthly subscription plan for £239 per month, with £159 monthly credit and access to all legal services at 50% discount on our Standard Rates.
Extend
Comprehensive legal partnership for established businesses
Fully account managed and scalable annual subscription plan with support from a curated team of partners and senior solicitors, with up to 33% discount on our Standard Rates.
