Companies Act 2006

713Requirements for payment out of capitalU.K.
This section has no associated Explanatory Notes

(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 [F1to section 720A and] to any order of the court under section 721 (power of court to extend period for compliance on application by persons objecting to payment).

Textual Amendments