PART VISHARE CAPITAL, ITS INCREASE, MAINTENANCE AND REDUCTION
CHAPTER VIIREDEEMABLE SHARES; PURCHASE BY A COMPANY OF ITS OWN SHARES
Redemption or purchase of own shares out of capital (private companies only)
Objections by company's members or creditors186 F2
1
Where a private company passes a special resolution approving for the purposes of this Chapter any payment out of capital for the redemption or purchase of any of its shares—
a
any member of the company other than one who consented to or voted in favour of the resolution; and
b
any creditor of the company,
may within 5 weeks of the date on which the resolution was passed apply to the court for cancellation of the resolution.
2
The application may be made on behalf of the persons entitled to make it by such one or more of their number as they may appoint in writing for the purpose.
3
If an application is made, the company shall—
a
forthwith give notice in the prescribed form of that fact to the registrar; and
b
within 15 days from the making of any order of the court on the hearing of the application, or such longer period as the court may by order direct, deliver an office copy of the order to the registrar.
4
A company which fails to comply with paragraph (3) and any officer of it who is in default is liable to a fine and, for continued contravention, to a daily default fine.