C1Part 18Acquisition by limited company of its own shares

Annotations:
Modifications etc. (not altering text)

Chapter 4Purchase of own shares

Supplementary provisions

707Return to registrar of purchase of own shares

1

Where a company purchases shares under this Chapter, it must deliver a return to the registrar within the period of 28 days beginning with the date on which the shares are delivered to it.

2

The return must distinguish—

a

shares in relation to which section 724 (treasury shares) applies and shares in relation to which that section does not apply, and

b

shares in relation to which that section applies—

i

that are cancelled forthwith (under section 729 (cancellation of treasury shares)), and

ii

that are not so cancelled.

3

The return must state, with respect to shares of each class purchased—

a

the number and nominal value of the shares, and

b

the date on which they were delivered to the company.

4

In the case of a public company the return must also state—

a

the aggregate amount paid by the company for the shares, and

b

the maximum and minimum prices paid in respect of shares of each class purchased.

5

Particulars of shares delivered to the company on different dates and under different contracts may be included in a single return.

In such a case the amount required to be stated under subsection (4)(a) is the aggregate amount paid by the company for all the shares to which the return relates.

6

If default is made in complying with this section an offence is committed by every officer of the company who is in default.

7

A person guilty of an offence under this section is liable—

a

on conviction on indictment, to a fine;

b

on summary conviction to a fine not exceeding the statutory maximum and, for continued contravention, a daily default fine not exceeding F1one-tenth of the statutory maximumF1one-tenth of the greater of £5,000 or the amount corresponding to level 4 on the standard scale for summary offences.