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Off-market purchase
Practical Law UK Glossary 3-200-1398 (Approx. 3 pages)
Glossary
Off-market purchase
A purchase by a limited company of its own shares which is carried out either:
- Otherwise than on a recognised investment exchange (that is, buying shares by approaching existing shareholders rather than through the stock market).
- On a recognised investment exchange but where the shares are not subject to a marketing arrangement on the exchange.
(Section 693(2), Companies Act 2006.)
A share buyback by a private limited company is effected off-market and the requirements for the approval of an off-market share buyback are set out in section 694 of the Companies Act 2006.
For more information on share buybacks, see Practice note, Share buybacks: overview.