With the repeal of financial assistance legislation due on 1 October, private companies could be looking to shore up their stock holdings. But, as Karl Taylor reports, there may yet be hurdles to overcome
It is currently unlawful for a private limited company to provide financial assistance to the buyer of any of its shares. This rule was initially put in place to stop cash-rich companies from in effect purchasing themselves, with potential consequences for the shareholders and creditors of the company.
