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
165 Authority for contingent purchase contract.
(1)
A contingent purchase contract is a contract entered into by a company and relating to any of its shares—
(a)
which does not amount to a contract to purchase those shares, but
(b)
under which the company may (subject to any conditions) become entitled or obliged to purchase those shares.
(2)
A company may only make a purchase of its own shares in pursuance of a contingent purchase contract if the contract is approved in advance by a special resolution of the company before the contract is entered into; and subsections (3) to (7) of section 164 apply to the contract and its terms.