EOA Response to Internal Share Markets Consultation
The EOA has responded to the Department for Business, Innovation and Skills consultation on the implementation of Nuttall Review recommendations about deregulating the conditions of buy backs.
The consultation document picks out one of the Nuttall Review recommendations that the process needed to be revised as it was currently overly burdensome. It also highlights the difficulties for smaller private companies and start-ups in finding the funds to buy back shares through a single payment and seeks views on the current regulations, the time taken up by compliance and the structure of buying back shares among other issues.
The goal of the change is to give companies more flexibility in how they deal with the shares. If implemented, we believe that the working of internal share markets will improve, costs will reduce, and an important signal will be sent to the business community and professional advisers that the Government is serious about promoting employee ownership.
Our consultation response can be downloaded from the link below. You can read more about the Nuttall Review and it's launch here: http://bit.ly/Mid4Xp