Part 18

Acquisition by limited company of its own shares
Chapter 4

Purchase of own shares

Supplementary provisions

Notice to registrar of cancellation of shares
708
1
If on the purchase by a company of any of its own shares in accordance with this Part—
a
section 724 (treasury shares) does not apply (so that the shares are treated as cancelled), or
b
that section applies but the shares are cancelled forthwith (under section 729 (cancellation of treasury shares)),
the company must give notice of cancellation to the registrar, within the period of 28 days beginning with the date on which the shares are delivered to it, specifying the shares cancelled.
2
The notice must be accompanied by a statement of capital.
3
The statement of capital must state with respect to the company’s share capital immediately following the cancellation—
a
the total number of shares of the company,
b
the aggregate nominal value of those shares,
c
for each class of shares—
i
prescribed particulars of the rights attached to the shares,
ii
the total number of shares of that class, and
iii
the aggregate nominal value of shares of that class, and
d
the amount paid up and the amount (if any) unpaid on each share (whether on account of the nominal value of the share or by way of premium).
4
If default is made in complying with this section, an offence is committed by—
a
the company, and
b
every officer of the company who is in default.
5
A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.