Companies Act 2006 (c. 46)

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

715 Directors' statement: offence if no reasonable grounds for opinion

(1) If the directors make a statement under section 714 without having reasonable grounds for the opinion expressed in it, an offence is committed by every director who is in default.

(2) A person guilty of an offence under this section is liable—

(a) on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both);

(b) on summary conviction—

(i) in England and Wales, to imprisonment for a term not exceeding twelve months or a fine not exceeding the statutory maximum (or both);

(ii) in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum (or both).