The Act of 10 August 2016 (the "Act"), modernising the Luxembourg Companies Act of 10 August 1915 as amended, introduces a formal legal basis for both the redemption of shares and the issuance of redeemable shares by a SARL. The Act also amends certain provisions regarding the redemption of shares by an SA. The amended rules will facilitate the implementation of management incentive plans and the buy-back of shares by listed companies.