Share Buyback Guide Released by Legal Clarity
August 22, 2011 (PRLEAP.COM) Business NewsLegal Clarity, an innovative legal services company based in Birmingham, has today issued an article outlining the circumstances in which a UK company may wish to perform a share buyback, how that share buyback can be funded and the necessary procedural steps to achieve that end.
Legal Clarity's share buyback service (http://www.legalclarity.co.uk/share-buyback.htm) combines web-based technology with its skilled draftsmen to provide all the documentation and advice a company will need to purchase its own shares. Legal Clarity's service is tailored to the needs of accountants, entrepreneurs and solicitors and provides on-demand consultations with any client who needs this work carried out.
Legal Clarity are dedicated to providing user friendly services and present all documentation with clear and accurate instructions to ensure compliance with the law in any given situation.
James Quinn, Director says:
'There are a number of changes introduced by the Companies Act 2006 Act which have the effect of simplifying the share buyback procedure. A company is no longer required to have specific authorisation in its articles for the share buyback. The statutory declaration which was required under the Companies Act 1985 has also been replaced with a directors' statement.'
'A company is likely at some point in its life to need to return cash to its shareholders. This could simply be because a shareholder is retiring or pursuing other interests.'
'Using the share buyback procedure set out in the Companies Act is one means of achieving this.'
'This new article highlights various situations in which the share buyback procedure can be used, what funds can be used, what restrictions are applicable and the procedural steps that need to be taken to comply with the law.'
Legal Clarity provides fixed cost legal services, tailored to the individual needs of its clients. It offers a wide range of legal drafting, company secretarial and company formation services through its website (http://www.legalclarity.co.uk). Free guides to various corporate and commercial agreements and procedures are available on its website.