Share Buybacks

Company Bureau can arrange share buybacks for Irish companies. This process involves a company’s reacquisition of shares from its shareholders. A share buyback could be an ideal alternative to paying dividends as it allows a company to re-absorb a portion of its ownership while distributing excess cash to its shareholders. Share buybacks may also be useful in the case of a departing shareholder.

Key Aspects of a Share Buyback:

  • This type of transaction is only used when the company is purchasing the shares from the shareholder and there is an exchange in money (nominal value at least).
  • Shares can only be purchased by the company out of its distributable profits.
  • Shares can be bought back at a premium.
  • This process requires a special resolution.
  • When bought back, the shares are either cancelled or held as treasury shares.
  • Covered by Companies Act 2014 and Taxes Consolidation Act 1997.

Please Note: Depending on the situation, share buybacks could create tax implications for companies or their shareholders. It is recommended that you seek tax advice before proceeding with a share buyback.

Should you need assistance in relation to your company share structure including the reacquisition of shares, share transfers, or creating share classes please don’t hesitate to Contact Us today. A member of our expert Company Secretarial team will be in contact within 24 hours to assist you.

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