| Commentary

207 Power of limited company to purchase its own shares

| Commentary

4: PURCHASE OF A COMPANY’S OWN SHARES

207 Power of limited company to purchase its own shares

A limited company may purchase its own shares (including any redeemable shares), provided that it satisfies the relevant conditions set out in the Companies Act 20061. This power is subject to any restriction or prohibition in the company’s articles and is in any event restricted to shares which are fully paid2. A company may not purchase its own shares if this would mean it no longer had any issued shares other than redeemable shares or treasury shares3.

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