(d) It is particularly useful in relation to employee
(e)
(f)
share schemes in enabling the shares of employees to
be re-purchased on their ceasing to be employed by
the company.
It may help with the marketing of shares by enabling
the company to give a subscriber an option to re-sell
to the company.
It enables companies to purchase their shares for use
later in stock option plans or acquisition programmes.
(g) If redeemable shares are quoted at below the redemption
price it enables the company to save money by buying up
in advance of the redemption date (a practice which our
companies can, and do, adopt in the case of debentures
but cannot in the case of redeemable preference shares).
(h) It permits the evolution of the open-ended investment
company or mutual fund instead of having to operate
through the mechanism of a unit trust.
(i) It provides a company with surplus cash with a further
means of using it advantageously.
(j) It can be used to support the market for the shares
if this is thought to be unduly depressed, thus preserving
for the shareholders the value of their shares as marketable
securities.
(k) If the company not only buys its shares but trades in
the treasury shares thus acquired it may make money thereby.
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