Company could buy back your own shares. Your company can finance your purchase or redemption of your own shares out of your capital by passing a special resolution. Your company can only do this provided there is no restriction or prohibition in your company’s articles of association.
If your company finances your purchase by a payment out of its capital, your company directors must also make a statement about the solvency of your company immediately after the purchase and in the following year. All your company directors must sign the solvency statement.
Directors’ report and auditor’s report
Your company must make a copy of your solvency statement and your auditor’s report confirming your directors’ opinion and made available to your shareholders (members) at or before in the case of a written resolution. If your resolution is to be passed at a meeting, by making a copy of your directors’ statement and your auditor’s report available for inspection at that meeting.
Your company must also deliver a copy of your directors’ statement and your auditors report to Companies House no later than the day on which your company first publish or give notice of your proposed payment out of capital.
You may refer to the section 719 of the Companies Act 2006 for the requirements for publishing and giving notice on this matter.
Apply to court to cancel
Any shareholder of your company who did not consent or vote in favour of your resolution or any creditor of your company, can apply to court to cancel your resolution, within five weeks of the passing of your resolution.
The applicant to the court must complete and the Companies House form SH16 to be delivered to Companies House immediately. When your company receives notice of your court application, your company must immediately notify Companies House using the form SH17 and, within 15 days of the making of a court order, your company must deliver a copy of the order to Companies House.
Refer to Parts 17 and 18 of the Companies Act 2006 for further information on company shares administration required by law.
The changes in your company’s shares capital are to be included when filing your Confirmation Statement.