Part V

Share Capital, its Increase, Maintenance and Reduction
Chapter VII

Redeemable Shares; Purchase by a Company of its Own Shares

Redemption and purchase generally

Treasury shares: proceeds of sale
162F
1
Where shares held as treasury shares are sold, the proceeds of sale shall be dealt with in accordance with this section.
2
Where the proceeds of sale are equal to or less than the purchase price paid by the company for the shares, the proceeds shall be treated for the purposes of Part 23 of the Companies Act 2006 as a realised profit of the company.
3
Where the proceeds of sale exceed the purchase price paid by the company for the shares—
a
that part of the proceeds of sale that is equal to the purchase price paid shall be treated for the purposes of Part 8 as a realised profit of the company, and
b
a sum equal to the excess shall be transferred to the company’s share premium account.
4
The purchase price paid by the company for the shares shall be determined by the application of a weighted average price method.
5
Where the shares were allotted to the company as fully paid bonus shares, the purchase price paid for them shall, for the purposes of subsection (4), be treated as being nil.
Words in s. 162F(2) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(2), 3(1), Sch. 1 para. 72 (with arts. 6, 11, 12)
Ss. 126-182 repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 (with arts. 5, 7, 8, Sch. 2 (as amended by S.I. 2009/1802,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.))