C1Part 18Acquisition by limited company of its own shares
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).
Pts. 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