Following extensive consultation with the Association of British Insurers (ABI) and the National Association of Pension Funds (NAPF), the Association of Corporate Treasurers believes that it is possible for a treasury stock programme to co-exist with the maintenance of pre-emption rights for shareholders.
In the late 1990’s the ACT was active in promoting the idea of a company being able to buy-in and hold its own shares as Treasury Shares. The ACT was therefore delighted that from 1 December 2003 changes to Company law made this possible in the UK (The Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003).
