C2C1Part 18Acquisition by limited company of its own shares
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
Chapter 5Redemption or purchase by private company out of capital
Requirements for payment out of capital
713Requirements for payment out of capital
1
A payment out of capital by a private company for the redemption or purchase of its own shares is not lawful unless the requirements of the following sections are met—
section 714 (directors' statement and auditor's report);
section 716 (approval by special resolution);
section 719 (public notice of proposed payment);
section 720 (directors' statement and auditor's report to be available for inspection).
2
This is subject F1to section 720A and to any order of the court under section 721 (power of court to extend period for compliance on application by persons objecting to payment).
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))