C1Part 18Acquisition by limited company of its own shares

Annotations:
Modifications etc. (not altering text)

Chapter 4Purchase of own shares

Authority for off-market purchase

700Release of company's rights under contract for off-market purchase

1

An agreement by a company to release its rights under a contract approved under section 694 (authorisation of off-market purchase) is void unless the terms of the release agreement are approved in advance in accordance with this section.

2

The terms of the proposed agreement must be authorised by a special resolution of the company before the agreement is entered into.

3

That authority may be varied, revoked or from time to time renewed by a special resolution of the company.

4

In the case of a public company a resolution conferring, varying or renewing authority must specify a date on which the authority is to expire, which must not be later than 18 months after the date on which the resolution is passed.

5

The provisions of—

  • section 698 (exercise of voting rights), and

  • section 699 (disclosure of details of variation),

apply to a resolution authorising a proposed release agreement as they apply to a resolution authorising a proposed variation.