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Listed companies’ share buyback and treasury share sale operations now have greater leeway in terms of volumes and timelines after the Capital Market Authority (CMA) approved amendments to The Implementing Regulation of the Companies Law for Listed Joint Stock Companies (pdf), it said in a statement. The changes look to boost capital market efficiency and enhance flexibility by lifting restrictions to listed firms engaging in share buyback and sale operations. The amendments and updated regulations will come into effect once they are published.
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ICYMI: The CMA put up draft amendments to the regs of the Companies Law for Listed Joint Stock Companies for feedback on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) in early June.
What has changed? Listed companies now have 18 months to execute shareholder-approved share buybacks, up from a previous 12-month limit. Firms can now also buy back or sell treasury shares at up to 25% of the previous five trading days’ average daily volumes. The previous regs capped volumes for share buybacks to amounts approved by the general assembly, while treasury share sale volumes were limited to an amount that had been approved by the company’s board and did not conflict with shareholder decisions regarding the buyback of those shares.
