Part V Share Capital, its Increase, Maintenance and Reduction

F1F1Chapter VII Redeemable Shares; Purchase by a Company of its Own Shares

Annotations:
Amendments (Textual)

Redemption and purchase generally

165 Authority for contingent purchase contract.

1

A contingent purchase contract is a contract entered into by a company and relating to any of its shares—

a

which does not amount to a contract to purchase those shares, but

b

under which the company may (subject to any conditions) become entitled or obliged to purchase those shares.

2

A company may only make a purchase of its own shares in pursuance of a contingent purchase contract if the contract is approved in advance by a special resolution of the company before the contract is entered into; and subsections (3) to (7) of section 164 apply to the contract and its terms.