C1Part 18Acquisition by limited company of its own shares

Annotations:
Modifications etc. (not altering text)

Chapter 4Purchase of own shares

Authority for purchase of own shares

693Authority for purchase of own shares

1

A limited company may only purchase its own shares—

a

by an off-market purchase, F1authorised in accordance with section 693A or in pursuance of a contract approved in advance in accordance with section 694;

b

by a market purchase, authorised in accordance with section 701.

2

A purchase is “off-market” if the shares either—

a

are purchased otherwise than on a recognised investment exchange, or

b

are purchased on a recognised investment exchange but are not subject to a marketing arrangement on the exchange.

3

For this purpose a company's shares are subject to a marketing arrangement on a recognised investment exchange if—

a

they are listed under Part 6 of the Financial Services and Markets Act 2000 (c. 8), or

b

the company has been afforded facilities for dealings in the shares to take place on the exchange—

i

without prior permission for individual transactions from the authority governing that investment exchange, and

ii

without limit as to the time during which those facilities are to be available.

4

A purchase is a “market purchase” if it is made on a recognised investment exchange and is not an off-market purchase by virtue of subsection (2)(b).

5

In this section “recognised investment exchange” means a recognised investment exchange (within the meaning of Part 18 of the Financial Services and Markets Act 2000) other than an overseas exchange (within the meaning of that Part).