- Treasury shares
A company's own issued shares that it has bought but not cancelled where the purchase was financed out of the company's distributable profits. Only qualifying shares may be held in treasury (such as shares listed on the Official List of the UK Listing Authority; or traded on the AIM; or officially listed in a European Economic Area (EEA) state; or traded on a market in an EEA state which is a regulated market for the purposes of Article 16 of Council Directive 93/22/EEC on investment services in the securities field). The Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 (SI 2003/1116) (as amended) that govern what companies may do with treasury shares came into force on 1 December 2003.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.