A share buyback (company purchase of own shares) can be an effective way for a company to return capital to shareholders, facilitate an exit or restructure its shareholding. However, the process is legally complex and must be carried out in strict compliance with UK company law.
At JPP Law we provide clear, tailored legal advice to businesses considering a share buyback. Whether you’re looking to buy back shares from a departing shareholder, manage succession in a family-owned company, or return surplus capital to investors, we ensure the transaction is handled correctly from start to finish and formalised with a water-tight share buyback contract.
Why You Need Specialist Legal Advice for Share Buybacks
A share buyback is not a routine transaction. If the process isn’t followed properly, it can have serious consequences:
- The buyback may be invalid if it doesn’t comply with the Companies Act 2006
- Directors could face personal liability for authorising an unlawful buyback
- Shareholders may lose access to valuable tax reliefs, such as Business Asset Disposal Relief
- HMRC may challenge the transaction, leading to unexpected tax liabilities or penalties
With the right solicitor advising you, these risks can be avoided.
Our Share Buyback Services
We offer practical, commercially focused advice on all aspects of share buybacks, including:
- Reviewing and advising on eligibility and legal requirements
- Preparing board minutes, shareholder resolutions and buyback contracts
- Liaising with accountants to ensure tax efficiency
- Filing the necessary documentation with Companies House
- Advising on stamp duty implications and any HMRC clearances (if applicable)
Who We Work With
Our clients include:
- Owner-managed businesses planning a shareholder exit
- Family businesses dealing with succession or generational change
- Companies with surplus cash wishing to return value to shareholders
- Start-ups and scale-ups buying out early-stage investors
- Businesses resolving disputes between shareholders or directors
We tailor our advice to the needs of your business and work closely with your accountant or tax adviser to ensure a smooth, compliant and efficient process.
Speak to a specialist Share Buyback Solicitor Today
If you’re considering a share buyback, early legal advice is essential. Our experienced solicitors will guide you through the legal process, minimise your risk, and help you achieve your commercial objectives with confidence.
