C2C1Part 18Acquisition by limited company of its own shares
Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2
Chapter 1General provisions
Charges of public company on own shares
670Public companies: general rule against lien or charge on own shares
1
A lien or other charge of a public company on its own shares (whether taken expressly or otherwise) is void, except as permitted by this section.
2
In the case of any description of company, a charge is permitted if the shares are not fully paid up and the charge is for an amount payable in respect of the shares.
3
In the case of a company whose ordinary business—
a
includes the lending of money, or
b
consists of the provision of credit or the bailment (in Scotland, hiring) of goods under a hire-purchase agreement, or both,
a charge is permitted (whether the shares are fully paid or not) if it arises in connection with a transaction entered into by the company in the ordinary course of that business.
4
In the case of a company that has been re-registered as a public company, a charge is permitted if it was in existence immediately before the application for re-registration.
Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))