Part 18

Acquisition by limited company of its own shares
Chapter 5

Redemption or purchase by private company out of capital

Requirements for payment out of capital

Resolution authorising payment: disclosure of directors' statement and auditor’s report
718
1
This section applies to a resolution under section 716 (resolution authorising payment out of capital for redemption or purchase of own shares).
2
A copy of the directors' statement and auditor’s report under section 714 must be made available to members—
a
in the case of a written resolution, by being sent or submitted to every eligible member at or before the time at which the proposed resolution is sent or submitted to him;
b
in the case of a resolution at a meeting, by being made available for inspection by members of the company at the meeting.
3
The resolution is ineffective if this requirement is not complied with.