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We are a limited company and due to a disagreement between

Customer Question

We are a limited company and due to a disagreement between shareholder the company purchased its own shares can this purchase be deducted from retained share capital reserve account ?
Submitted: 5 months ago.
Category: Tax
Customer: replied 5 months ago.
The company was advised to pay dividends and reduce the working directors/salaries however the dispute is believed to have engineered to ensure the remaining Director/shareholder purchased the shares leaving the existing director to set up a business in competition .
Customer: replied 5 months ago.
Sorry exiting director to set up a business in competition .
Customer: replied 5 months ago.
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Customer: replied 5 months ago.
Alternatively or as a combination of both can the company buy the shares via its b/fd retained profits
Expert:  Nicola-mod replied 5 months ago.
Hello,
I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.
I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
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Nicola
Customer: replied 5 months ago.
NicolaPlease continue to lookthanks
Expert:  bigduckontax replied 5 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The position as to companies buying their own shares is exceedingly complex and can be summarised here:

http://www.companylawclub.co.uk/can-a-company-buy-its-own-shares

The shares bought back would normally be treated as a reduction in share capital for accounting purposes.

I do hope that you have found my reply of assistance.

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