C1Part 18Acquisition by limited company of its own shares

Annotations:
Modifications etc. (not altering text)

Chapter 6Treasury shares

724Treasury shares

1

This section applies where—

a

a limited company makes a purchase of its own shares in accordance with Chapter 4,

b

the purchase is made out of distributable profits, and

c

the shares are qualifying shares.

2

For this purpose “qualifying shares” means shares that—

a

are included in the official list in accordance with the provisions of Part 6 of the Financial Services and Markets Act 2000 (c. 8),

b

are traded on the market known as the Alternative Investment Market established under the rules of London Stock Exchange plc,

c

are officially listed in an EEA State, or

d

are traded on a regulated market.

In paragraph (a) “the official list” has the meaning given in section 103(1) of the Financial Services and Markets Act 2000.

3

Where this section applies the company may—

a

hold the shares (or any of them), or

b

deal with any of them, at any time, in accordance with section 727 or 729.

4

Where shares are held by the company, the company must be entered in its register of members as the member holding the shares.

5

In the Companies Acts references to a company holding shares as treasury shares are to the company holding shares that—

a

were (or are treated as having been) purchased by it in circumstances in which this section applies, and

b

have been held by the company continuously since they were so purchased (or treated as purchased).