PART VShare Capital, its Increase, Maintenance and Reduction
CHAPTER VIIRedeemable Shares ; Purchase by a Company of its Own Shares
Redemption and purchase generally
168Payments apart from purchase price to be made out of distributable profits
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.