Part V U.K. Share Capital, its Increase, Maintenance and Reduction

Chapter VI E+W+S Financial Assistance by a Company for Acquisition of its Own Shares

Provisions applying to both public and private companies E+W+S

151 Financial assistance generally prohibited. E+W+S

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Textual Amendments

F1 S. 151 repealed (1.10.2008 with application as mentioned in art. 5(2) of the commencing S.I.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, arts. 5(2), 8(b), Sch. 3 Pt. 1 (with arts. 7, 12, Sch. 4 paras. 51, 52)

152 Definitions for this Chapter. E+W+S

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Textual Amendments

F2 S. 152 repealed (1.10.2008 with application as mentioned in art. 5(2) of the commencing S.I.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, arts. 5(2), 8(b), Sch. 3 Pt. 1 (with arts. 7, 12, Sch. 4 paras. 51, 52)

153 Transactions not prohibited by s. 151. E+W+S

F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 S. 153 repealed (1.10.2008 with application as mentioned in art. 5(2) of the commencing S.I.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, arts. 5(2), 8(b), Sch. 3 Pt. 1 (with arts. 7, 12, Sch. 4 paras. 51, 52)

154 Special restriction for public companies. E+W+S

(1) In the case of a public company, section 153(4) authorises the giving of financial assistance only if the company has net assets which are not thereby reduced or, to the extent that those assets are thereby reduced, if the assistance is provided out of distributable profits.

(2) For this purpose the following definitions apply—

(a) “net assets” means the amount by which the aggregate of the company’s assets exceeds the aggregate of its liabilities (taking the amount of both assets and liabilities to be as stated in the company’s accounting records immediately before the financial assistance is given);

(b) “liabilities” includes any amount retained as reasonably necessary for the purpose of providing for any liability [F4 the nature of which is clearly defined and] which is either likely to be incurred, or certain to be incurred but uncertain as to amount or as to the date on which it will arise.

Textual Amendments

F4 Words in s. 154(2)(b) substituted (12.11.2004 with effect as mentioned in reg. 1(2) of the amending S.I.) by The Companies Act 1985 (International Accounting Standards and Other Accounting Amendments) Regulations 2004 (S.I. 2004/2947), reg. 15, Sch. 7 para. 3

Private companies E+W+S

155 Relaxation of s. 151 for private companies. E+W+S

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Textual Amendments

F5 S. 155 repealed (1.10.2008 with application as mentioned in art. 5(2) of the commencing S.I.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, arts. 5(2), 8(b), Sch. 3 Pt. 1 (with arts. 7, 12, Sch. 4 paras. 51, 52)

156 Statutory declaration under s. 155. E+W+S

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Textual Amendments

F6 S. 156 repealed (1.10.2008 with application as mentioned in art. 5(2) of the commencing S.I.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, arts. 5(2), 8(b), Sch. 3 Pt. 1 (with arts. 7, 12, Sch. 4 paras. 51, 52)

157 Special resolution under s. 155. E+W+S

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Textual Amendments

F7 S. 157 repealed (1.10.2008 with application as mentioned in art. 5(2) of the commencing S.I.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, arts. 5(2), 8(b), Sch. 3 Pt. 1 (with arts. 7, 12, Sch. 4 paras. 51, 52)

158 Time for giving financial assistance under s. 155. E+W+S

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Textual Amendments

F8 S. 158 repealed (1.10.2008 with application as mentioned in art. 5(2) of the commencing S.I.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, arts. 5(2), 8(b), Sch. 3 Pt. 1 (with arts. 7, 12, Sch. 4 paras. 51, 52)