UK to Ease Rules for Share Plans

The British government will make changes to the Companies Act of 2006 to make it easier for employees to own shares, most significantly for closely held companies. The new law, to be enacted this year, will allow all companies to authorize off-market share repurchases by a majority vote rather than a supermajority, including for a series of off-market purchases. Companies can also now hold shares in treasury for use in share plans. Closely held companies will now be able to pay for their own shares in installments rather than, as under current law, in a single purchase. They will also now be able to use capital reserves to repurchase those shares.