Companies Act 2006 Explanatory Notes

Section 679: Assistance by public company for acquisition of shares in its private holding company

993.This section replaces sections 151(1) and (2) and 153(1) and (2) of the 1985 Act.

994.Like section 678 this section does not carry forward the prohibition on private companies providing financial assistance for a purchase of own shares, but the current prohibition on the giving of financial assistance by a public company subsidiary for the purpose of an acquisition of shares in its private holding company is retained. Section 679 also retains the prohibition on the giving of post-acquisition assistance by a public company subsidiary.

Back to top