We are in the process of organising a share buyback from a departing director and are considering whether to hold the shares as treasury shares or to cancel them. We do operate an EMI share option sheme, and I understand that treasury shares can be held to be distributed when options are exercised. My question is whether the rights attached to the shares if and when they are redistributed have to be the same as the rights attached to the shares when they were bought back. Is there the option of changing the shares held in treasury from - in this instance - directors shares to ordinary shares with no voting rights? I understand that whilst the shares are held as treasury shares they have no rights attached to them.
Thanks in advance