C1Part 18Acquisition by limited company of its own shares

Annotations:
Modifications etc. (not altering text)

Chapter 6Treasury shares

724Treasury shares

F11

This section applies where–

a

a limited company makes a purchase of its own shares in accordance with Chapter 4, and

b

the purchase is made—

i

out of distributable profits, or

ii

with cash under section 692(1)(b).

2

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

Where this section applies the company may—

a

hold the shares (or any of them), or

b

deal with any of them, at any time, in accordance with section 727 or 729.

4

Where shares are held by the company, the company must be entered in its register of members as the member holding the shares.

5

In the Companies Acts references to a company holding shares as treasury shares are to the company holding shares that—

a

were (or are treated as having been) purchased by it in circumstances in which this section applies, and

b

have been held by the company continuously since they were so purchased (or treated as purchased).