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Companies Act 2006

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Changes over time for: Section 797

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Companies Act 2006, Section 797 is up to date with all changes known to be in force on or before 25 February 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

797Consequences of order imposing restrictionsU.K.

This section has no associated Explanatory Notes

(1)The effect of an order under section 794 that shares are subject to restrictions is as follows—

(a)any transfer of the shares is void;

(b)no voting rights are exercisable in respect of the shares;

(c)no further shares may be issued in right of the shares or in pursuance of an offer made to their holder;

(d)except in a liquidation, no payment may be made of sums due from the company on the shares, whether in respect of capital or otherwise.

(2)Where shares are subject to the restriction in subsection (1)(a), an agreement to transfer the shares is void.

This does not apply to an agreement to transfer the shares on the making of an order under section 800 made by virtue of subsection (3)(b) (removal of restrictions in case of court-approved transfer).

(3)Where shares are subject to the restriction in subsection (1)(c) or (d), an agreement to transfer any right to be issued with other shares in right of those shares, or to receive any payment on them (otherwise than in a liquidation), is void.

This does not apply to an agreement to transfer any such right on the making of an order under section 800 made by virtue of subsection (3)(b) (removal of restrictions in case of court-approved transfer).

(4)The provisions of this section are subject—

(a)to any directions under section 794(2) or section 799(3) (directions for protection of third parties), and

(b)in the case of an interim order under section 794(3), to the terms of the order.

Commencement Information

I1S. 797 wholly in force at 20.1.2007, see s. 1300 and S.I. 2006/3428, art. 3(1)(d) (subject to art. 5, Sch. 1 and with arts. 6, 8, Sch. 5)

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