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.
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
|Redemption of shares||From £300.00 + VAT||Quote|
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