What impact does the Companies Act 2006 have on the process of a company buying its own shares?

Companies Act 2006 Part 18, Chapter 4 and 5 introduced changes to the process of a company buying its own shares. Broadly, the main changes are:

• a company’s articles no longer have to allow this type of purchase
• a company is able to purchase its own shares so long as this isn’t restricted or prohibited in the articles
• before a company share purchase can take place, the directors must make a statement concerning the solvency of the company, which is less time-consuming than the previously required statutory declaration