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Companies Act 2006

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Changes over time for: Section 727

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Point in time view as at 06/04/2022.

Changes to legislation:

Companies Act 2006, Section 727 is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

727Treasury shares: disposalU.K.

This section has no associated Explanatory Notes

(1)Where shares are held as treasury shares, the company may at any time—

(a)sell the shares (or any of them) for a cash consideration, or

(b)transfer the shares (or any of them) for the purposes of or pursuant to an employees' share scheme.

(2)In subsection (1)(a) “cash consideration” means—

(a)cash received by the company, or

(b)a cheque received by the company in good faith that the directors have no reason for suspecting will not be paid, or

(c)a release of a liability of the company for a liquidated sum, or

(d)an undertaking to pay cash to the company on or before a date not more than 90 days after the date on which the company agrees to sell the shares, or

(e)payment by any other means giving rise to a present or future entitlement (of the company or a person acting on the company's behalf) to a payment, or credit equivalent to payment, in cash.

For this purpose “cash” includes foreign currency.

(3)The Secretary of State may by order provide that particular means of payment specified in the order are to be regarded as falling within subsection (2)(e).

(4)If the company receives a notice under section 979 (takeover offers: right of offeror to buy out minority shareholders) that a person desires to acquire shares held by the company as treasury shares, the company must not sell or transfer the shares to which the notice relates except to that person.

(5)An order under this section is subject to negative resolution procedure.

Commencement Information

I1S. 727 wholly in force at 1.10.2009; s. 727 not in force at Royal Assent, see s. 1300; s. 727 in force for specified purposes at 20.1.2007 by S.I. 2006/3428, art. 3(3) (subject to art. 5, Sch. 1 and with arts. 6, 8, Sch. 5); s. 727 otherwise in force at 1.10.2009 by S.I. 2008/2860, art. 3(l) (with arts. 5, 7, 8, Sch. 2) (as amended by S.I. 2009/1802, art. 18)

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