Part 18Acquisition by limited company of its own shares

Chapter 5Redemption or purchase by private company out of capital

Requirements for payment out of capital

713Requirements for payment out of capital

(1)A payment out of capital by a private company for the redemption or purchase of its own shares is not lawful unless the requirements of the following sections are met—

• section 714 (directors' statement and auditor’s report);

• section 716 (approval by special resolution);

• section 719 (public notice of proposed payment);

• section 720 (directors' statement and auditor’s report to be available for inspection).

(2)This is subject to any order of the court under section 721 (power of court to extend period for compliance on application by persons objecting to payment).