Inform Direct makes it effortless to record when a company is purchasing its own shares to hold in treasury.

1. Go to the Share Classes tab and select Share reorganisation.

2. Next, select 'Purchase of own shares' option and click 'Next.'

3. Then, input the date of purchase and choose the correct share class. Also select the 'Hold the shares in treasury option'.

4. Below this, it indicates how the company has funded the purchase of its own shares.

5. Now you can choose which shareholder' shares are being purchased and the Consideration. Then select, 'Complete.'

6. You will now need to confirm if stamp duty is payable.

Note. If the company is a PLC you will also need to confirm if section 662 of the Companies Act 2006 applies.

7. Before submitting the purchase of shares you will be asked if approval is required, this allows you to create a summary document to be approved prior to creating the Companies House form. 

Note: The approval feature is only available to subscribers of the software. What are the benefits of subscribing to Inform Direct? Pay as you go users will skip straight to the step below.

If you select 'Yes' here then please see How do I complete a Pending Approval? when you are ready to complete the transaction. 

8. You will need to confirm that the board of directors has passed the necessary resolution. 

9. Finally, select what supporting documents you would like to produce by ticking alongside the relevant documents.

Note: Board minutes are only available for non PLC Companies.

Note: Inform Direct will then populate form SH03 with the relevant details, this needs to be posted to Companies House. A blank copy can be found here.

You should now see the shares that you have purchased into treasury available under the shareholder tab, held by the Company.

Note: Following any share reorganisation it is often helpful to file a confirmation statement to provide an updated shareholder list to Companies House. Why might I file a Confirmation Statement early?

Once the shares are available in treasury, you can also use Inform Direct to transfer shares from treasury, to a shareholder and generate the SH04 form. See How do I Transfer Shares from Treasury to a Shareholder using the SH04 Form?

Please note: You can safely complete this transaction if replicating a filing already made at Companies House. Inform Direct cannot submit this form electronically, so only a paper form is produced.