Part 18

Acquisition by limited company of its own shares
Chapter 1

General provisions

Shares held by or for public company

Transfer to reserve on acquisition of shares by public company or nominee
669
1
Where—
a
a public company, or a nominee of a public company, acquires shares in the company, and
b
those shares are shown in a balance sheet of the company as an asset,
an amount equal to the value of the shares must be transferred out of profits available for dividend to a reserve fund and is not then available for distribution.
2
Subsection (1) applies to an interest in shares as it applies to shares.
As it so applies the reference to the value of the shares shall be read as a reference to the value to the company of its interest in the shares.
Ss. 662-669 modified (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 12(1), Sch. 3 para. 7(1) (with art. 10)
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
Ss. 662-669 modified (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. 7(1)
Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))