Proposed Treasury Share Regulations - F.S.C Press Release

Draft Companies Act 1931 to 2004 (Treasury Share) Regulations 2010

Plans to allow companies whose shares are traded on a market to hold up to 10% of shares in treasury are being progressed by the Financial Supervision Commission (“the Commission”). This will result in increased flexibility for companies when managing their share capital.

On 1 September 2009 the Companies (Amendment) Act 2009 (“the Amendment Act”) came into effect. Section 25A of the Amendment Act, gave the Commission the power to make regulations to introduce treasury shares under the Companies Acts 1992

The Commission started consulting on whether to allow treasury shares in July 2009. Interested parties were asked give details of the motivation and rationale for introducing treasury shares.

Respondents indicated that treasury shares are vital in ensuring that the Isle of Man remains able to compete as a premier offshore financial centre. The responses indicated a need for prompt action. In acknowledging this commercial need the Commission is now consulting on draft legislation which is needed to introduce treasury shares, for a limited period.

The Consultation Document can be found on the FSC’s website at http://www.fsc.gov.im/doclibrary/condocs.xml.

The closing date for comments is 19 February 2010.

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