Redemption of shares / Our Solution

Companies issue redeemable shares for a variety of reasons; often as an investment tool or as a means of rewarding employee loyalty.

Eventually, something is likely to happen which triggers a decision by the company to exercise its right of redemption – for example, the shareholder leaving employment. The company will then take back, and usually cancel, the shares.

Many people do not realise that the act of redeeming shares is a process, rather than an event, and that a company wishing to do so will need to observe notice periods, convene directors’ meetings and communicate adequately with the shareholders. There are also circumstances in which a company cannot redeem shares and in such circumstances, doing so can be an offence.

It’s therefore important to ensure that any redemption of shares is carried out properly and in a legally sound manner.

Our service

The Company Law Solutions service provides everything required to be legally compliant, including:

  • guidance as to the applicable procedures
  • notice to shareholder
  • completion letter
  • minutes of directors' meetings
  • completed official forms for Companies House
Service Price  
Redemption of shares From £300.00 + VAT Quote

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