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

Payments apart from purchase price to be made out of distributable profits.
168
1
A payment made by a company in consideration of—
a
acquiring any right with respect to the purchase of its own shares in pursuance of a contract approved under section 165, or
b
the variation of a contract approved under section 164 or 165, or
c
the release of any of the company’s obligations with respect to the purchase of any of its own shares under a contract approved under section 164 or 165 or under a contract for a purchase authorised under section 166,
must be made out of the company’s distributable profits.
2
If the requirements of subsection (1) are not satisfied in relation to a contract—
a
in a case within paragraph (a) of the subsection, no purchase by the company of its own shares in pursuance of that contract is lawful under this Chapter,
b
in a case within paragraph (b), no such purchase following the variation is lawful under this Chapter, and
c
in a case within paragraph (c), the purported release is void.
Ss. 126-182 repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 (with arts. 5, 7, 8, Sch. 2 (as amended by S.I. 2009/1802,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.))