Part 18Acquisition by limited company of its own shares
Chapter 6Treasury shares
724Treasury shares
1
This section applies where—
a
a limited company makes a purchase of its own shares in accordance with Chapter 4,
b
the purchase is made out of distributable profits, and
c
the shares are qualifying shares.
2
For this purpose “qualifying shares” means shares that—
a
are included in the official list in accordance with the provisions of Part 6 of the Financial Services and Markets Act 2000 (c. 8),
b
are traded on the market known as the Alternative Investment Market established under the rules of London Stock Exchange plc,
c
are officially listed in an EEA State, or
d
are traded on a regulated market.
In paragraph (a) “the official list” has the meaning given in section 103(1) of the Financial Services and Markets Act 2000.
3
Where this section applies the company may—
a
hold the shares (or any of them), or
b
deal with any of them, at any time, in accordance with section 727 or 729.
4
Where shares are held by the company, the company must be entered in its register of members as the member holding the shares.
5
In the Companies Acts references to a company holding shares as treasury shares are to the company holding shares that—
a
were (or are treated as having been) purchased by it in circumstances in which this section applies, and
b
have been held by the company continuously since they were so purchased (or treated as purchased).