Treasury shares14.

(1)

Section 724 of the Act (treasury shares) is amended as follows.

(2)

For subsection (1), substitute—

“(1)

This section applies where–

(a)

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

(b)

the purchase is made—

(i)

out of distributable profits, or

(ii)

with cash under section 692(1)(b).”.

(3)

Omit subsection (2).