Part V Share Capital, its Increase, Maintenance and Reduction
Chapter VII Redeemable Shares; Purchase by a Company of its Own Shares
Redemption and purchase generally
162B Treasury shares: maximum holdings
(1)
Where a company has shares of only one class, the aggregate nominal value of shares held as treasury shares must not at any time exceed 10 per cent. of the nominal value of the issued share capital of the company at that time.
(2)
Where the share capital of a company is divided into shares of different classes, the aggregate nominal value of the shares of any class held as treasury shares must not at any time exceed 10 per cent. of the nominal value of the issued share capital of the shares in that class at that time.
(3)
Where subsection (1) or (2) is contravened by a company, the company must dispose of or cancel the excess shares, in accordance with section 162D, before the end of the period of 12 months beginning with the day on which that contravention occurs.
For this purpose “” means such number of the shares, held by the company as treasury shares at the time in question, as resulted in the limit being exceeded.