Part 18

Acquisition by limited company of its own shares
Chapter 5

Redemption or purchase by private company out of capital

Introductory

Power of private limited company to redeem or purchase own shares out of capital
709
1
A private limited company may in accordance with this Chapter, but subject to any restriction or prohibition in the company’s articles, make a payment in respect of the redemption or purchase of its own shares otherwise than out of distributable profits or the proceeds of a fresh issue of shares.
2
References below in this Chapter to payment out of capital are to any payment so made, whether or not it would be regarded apart from this section as a payment out of capital.