Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Treasury shares definition

What does Treasury shares mean? In practice, treasury shares are a company’s own shares that it has lawfully bought back and chosen not to cancel, but to hold in treasury for possible resale, transfer or later cancellation. In the UK, the regime is set out in the Companies Act 2006 (Part 18, including ss 724–729). Statutory conditions apply, typically including that the buy-back is made out of distributable profits. While held in treasury, the shares confer no voting rights and no entitlement to dividends or other distributions, and are disregarded for voting and similar capital calculations. The company may later sell, transfer (for...

Transferring treasury shares to employees’ share schemes: UK company law, pre-emption, Listing Rules, DTR/MAR, prospectus, tax and takeover issues

Published by a LexisNexis Corporate expert

Practice notes

Subject to the conditions in the Companies Act 2006 (CA 2006), a limited company may hold or deal in its own Shares. Once acquired, such shares are retained in treasury and are known as the company’s Treasury shares. For guidance on how, and for what reasons, a company might repurchase shares to place into treasury, see Practice Note: Buying back shares into treasury. The rules governing treasury shares are contained in CA 2006, ss 724–732. If a company breaches any of these provisions (other than CA 2006, s 730; see Practice Note: Cancellation of treasury shares), the company and every officer in default commit an offence. Upon conviction, a person guilty of the offence is liable to a fine.

Dealing with treasury shares

A company may simply retain its treasury shares (see Practice Note: Holding treasury shares)...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 22/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...