Part V Share Capital, its Increase, Maintenance and Reduction
F1F1Chapter VI Financial Assistance by a Company for Acquisition of its Own Shares
Provisions applying to both public and private companies
151 Financial assistance generally prohibited.
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
152 Definitions for this Chapter.
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
153 Transactions not prohibited by s. 151.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
154 Special restriction for public companies.
1
In the case of a public company, section 153(4) authorises the giving of financial assistance only if the company has net assets which are not thereby reduced or, to the extent that those assets are thereby reduced, if the assistance is provided out of distributable profits.
2
For this purpose the following definitions apply—
a
“net assets” means the amount by which the aggregate of the company’s assets exceeds the aggregate of its liabilities (taking the amount of both assets and liabilities to be as stated in the company’s accounting records immediately before the financial assistance is given);
b
“liabilities” includes any amount retained as reasonably necessary for the purpose of providing for any liability F5the nature of which is clearly defined and which is either likely to be incurred, or certain to be incurred but uncertain as to amount or as to the date on which it will arise.
Ss. 126-182 repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 (with arts. 5, 7, 8, Sch. 2 (as amended by S.I. 2009/1802, art. 18, Sch.))