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

163 Definitions of “off-market” and “market” purchase.

1

A purchase by a company of its own shares is “off-market” if the shares either—

a

are purchased otherwise than on F1a recognised investment exchange, or

b

are purchased on F1a recognised investment exchange but are not subject to a marketing arrangement on F2that investment exchange.

2

For this purpose, a company’s shares are subject to a marketing arrangement on a recognised stock exchange if either—

a

they are listed F3Part 6 of the Financial Services and Markets Act 2000; or

C1C2b

the company has been afforded facilities for dealings in those shares to take place on F4that investment exchange without prior permission for individual transactions from the authority governing F4that investment exchange and without limit as to the time during which those facilities are to be available.

3

A purchase by a company of its own shares is a “market purchase” if it is a purchase made on a recognised stock exchange, other than a purchase which is an off-market purchase by virtue of subsection (1)(b).

F54

“Recognised investment exchange” means a recognised investment exchange other than an overseas investment exchange.

F55

Expressions used in the definition contained in subsection (4) have the same meaning as in Part 18 of the Financial Services and Markets Act 2000.