Treasury share

A company's own issued share which the company has purchased pursuant to a share buyback but which is not cancelled upon delivery back to the company. A share can only be transferred into treasury where it has been purchased by a company from a shareholder out of distributable profits (section 724(1), Companies Act 2006).

The statutory provisions relating to treasury shares are set out in Chapter 6 of Part 18 of the Companies Act 2006.

For more information on treasury shares, including the reasons for holding shares in treasury and the requirements for buying and selling treasury shares, see Practice note, Treasury shares. For information on how treasury shares are used in employee share schemes, see Practice note, Treasury shares: use in share plans.