PART VISHARE CAPITAL, ITS INCREASE, MAINTENANCE AND REDUCTION
CHAPTER VIIREDEEMABLE SHARES; PURCHASE BY A COMPANY OF ITS OWN SHARES
Redemption and purchase generally
Payments apart from purchase price to be made out of distributable profits178 F2
1
A payment made by a company in consideration of—
a
acquiring any right with respect to the purchase of its own shares in pursuance of a contract approved under Article 175, or
b
the variation of a contract approved under Article 174 or 175, or
c
the release of any of the company's obligations with respect to the purchase of any of its own shares under a contract approved under Article 174 or 175 or under a contract for a purchase authorised under Article 176,
must be made out of the company's distributable profits.
2
If the requirements of paragraph (1) are not satisfied in relation to a contract—
a
in a case within paragraph (1)(a), no purchase by the company of its own shares in pursuance of that contract is lawful under this Chapter,
b
in a case within paragraph (1)(b), no such purchase following the variation is lawful under this Chapter, and
c
in a case within paragraph (1)(c), the purported release is void.