The government has launched a consultation on changes to deregulate the conditions under which organisations can authorise and finance share buy backs.
The consultation is based on a recommendation in The Nuttall Review on Employee Ownership, which was published in July.
In organisations where employees hold a direct stake, the employer often needs to buy back shares when staff leave and re-distribute them to new starters.
These buy-back arrangements must comply with a number of company law provisions, which the Nuttall Review concluded were overly burdensome. It recommended that the government simplify these provisions to encourage the further take up of direct employee ownership.
The consultation will close on 16 November.