Donald Reid Group

Case Studies – Share buy back

We advised on the best way to allow two of three equal shareholders buy out the third shareholder after the relationship between the three had broken down.

Background

This process took around 18 months and involved sorting out a termination of employment, ending a directorship and ultimately buying a third of the shares. During this process we acted as the intermediary between all of the parties and looked after the best interests of the Company and the remaining shareholders.

The Solution

We negotiated the settlement and share buy back from an unrealistic position to a workable solution. Rather than the Company buying back its own shares we used a different corporate vehicle so that the reserves and ultimately the credit rating of the trading vehicle were protected. We kept all parties informed of progress and engaged the necessary legal or HR support as necessary. Finally we used our client accounts to transfer the money and managed the signing.

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