Gibraltar Location

Purchase of Own Shares

Gibraltar company law permits companies to purchase their own shares subject to having an express power to do so in the articles of association and following statutory requirements. In general, the purchase price must be drawn out of the company’s distributable profits, although it may be possible to fund the purchase price from the proceeds of a fresh issue of shares or even “out of capital” (though, the latter only applies to private companies and triggers additional requirements, such as, inter alia, a statutory declaration of solvency by the directors, passing of a special resolution by the members of the company, preparation of accounts, an auditors’ report and publication of a notice in the Gazette. The statutory declaration and auditors’ report must be delivered to the Registrar of Companies).