Share Repurchase

Overview

A share repurchase (also called a buy-back) occurs when a company acquires its own shares from existing shareholders. The repurchase can be done at par value or at a premium, and depending on the transaction, may involve a reduction of share premium.

What you'll learn:

• How to record a share repurchase in the platform
• The effects of a share repurchase on share capital and ownership
• How the platform updates your records after a repurchase

Performing a Share Repurchase

Step 1: Navigate to Certificates

1. Open the entity's Share Capital section
2. Go to the Certificates tab

Step 2: Select the Certificate

Choose the specific share certificate you want to repurchase.

Step 3: Open Actions Menu

In the certificate view, click Actions.

Step 4: Select Repurchase

From the actions menu, select Repurchase.

Step 5: Enter Repurchase Details

Enter the following information:

• Repurchase Date: Provide the effective date of the repurchase. This should reflect the date approved by the board or shareholders (depending on company procedures)
• Repurchase Price: Input the price at which the shares are being repurchased

Step 6: Configure Share Premium Reduction (if applicable)

If the certificate was originally issued at a premium, you can choose to record a corresponding reduction in the share premium account:

• Toggle the Share Premium Reduction switch to enable this option

Step 7: Confirm the Repurchase

1. Review the repurchase details carefully
2. Verify the repurchase date and price
3. Confirm the share premium reduction setting (if applicable)
4. Click Repurchase to confirm

The repurchase has been recorded. The certificate will be marked as repurchased, and the company's capital history and registers will update automatically.

Understanding Share Repurchase

A share repurchase reduces the number of issued shares by acquiring them from shareholders. The repurchase can be done at par value (the nominal value of the shares) or at a premium (above the nominal value).

Key Effects of a Share Repurchase

• Number of Issued Shares Decreases – The repurchased shares are removed from circulation
• Share Capital May Decrease – If shares are repurchased at par value, share capital decreases accordingly
• Share Premium May Decrease – If shares were originally issued at a premium and you enable share premium reduction, the share premium account is reduced
• Ownership Percentages Change – Remaining shareholders' ownership percentages increase proportionally
• Certificate Status Changes – The repurchased certificate is marked as repurchased in the system

Practical Example

What Happens Next

After completing a share repurchase:

• The certificate is marked as repurchased in the certificates list
• The company's capital history is automatically updated to reflect the repurchase
• The share register is updated to show the reduced number of issued shares
• The cap table reflects the new ownership percentages for remaining shareholders
• Share capital and share premium accounts are updated (if applicable)
• The transaction appears in the capital actions history

Related Topics

• Capital Actions Overview – Learn about other capital actions you can perform
• Share Certificates – Understand how share certificates work
• Cap Table – View how share repurchases affect ownership visualization