Part 18Acquisition by limited company of its own shares
Chapter 1General provisions
Introductory
658General rule against limited company acquiring its own shares
1
A limited company must not acquire its own shares, whether by purchase, subscription or otherwise, except in accordance with the provisions of this Part.
2
If a company purports to act in contravention of this section—
a
an offence is committed by—
i
the company, and
ii
every officer of the company who is in default, and
b
the purported acquisition is void.
3
A person guilty of an offence under this section is liable—
a
on conviction on indictment, to imprisonment for a term not exceeding two years or a fine (or both);
b
on summary conviction—
i
in England and Wales, to imprisonment for a term not exceeding twelve months or a fine not exceeding the statutory maximum (or both);
ii
in Scotland or Northern Ireland, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum (or both).