C2C1Part 18Acquisition by limited company of its own shares

Annotations:
Modifications etc. (not altering text)
C2

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))

Chapter 3Redeemable shares

685Terms and manner of redemption

1

The directors of a limited company may determine the terms, conditions and manner of redemption of shares if they are authorised to do so—

a

by the company's articles, or

b

by a resolution of the company.

2

A resolution under subsection (1)(b) may be an ordinary resolution, even though it amends the company's articles.

3

Where the directors are authorised under subsection (1) to determine the terms, conditions and manner of redemption of shares—

a

they must do so before the shares are allotted, and

b

any obligation of the company to state in a statement of capital the rights attached to the shares extends to the terms, conditions and manner of redemption.

4

Where the directors are not so authorised, the terms, conditions and manner of redemption of any redeemable shares must be stated in the company's articles.