The plan to simplify share buy-back
rules are unlikely to boost SME employee share ownership any time
soon, says George Lovell
The government has continued its package of measures to encourage
employee share ownership by relaxing the rules regarding share buy-backs.
The Companies Act 2006 has been amended to make it easier for a private
company to buy back shares from its employees by allowing the company
to pay for the shares in instalments, reducing the shareholders' approval
requirement to 50% instead of the existing 75%, and by allowing the
shares to be bought back from capital or cash rather than distributable
reserves.
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