Modifications etc. (not altering text)
C1Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))
C2Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2
(1)Where shares held as treasury shares are sold, the proceeds of sale must be dealt with in accordance with this section.
(2)If the proceeds of sale are equal to or less than the purchase price paid by the company for the shares, the proceeds are treated for the purposes of Part 23 (distributions) as a realised profit of the company.
(3)If the proceeds of sale exceed the purchase price paid by the company—
(a)an amount equal to the purchase price paid is treated as a realised profit of the company for the purposes of that Part, and
(b)the excess must be transferred to the company's share premium account.
(4)For the purposes of this section—
(a)the purchase price paid by the company must be determined by the application of a weighted average price method, and
(b)if the shares were allotted to the company as fully paid bonus shares, the purchase price paid for them is treated as nil.