Commentary

210 Power of private company to redeem or purchase own shares out of capital

COMPANIES vol 10(1) Directors and Other Officers, Shareholders, Shares and Share Capital
| Commentary

210 Power of private company to redeem or purchase own shares out of capital

| Commentary

5: REDEMPTION OR PURCHASE BY A PRIVATE COMPANY OUT OF CAPITAL

210 Power of private company to redeem or purchase own shares out of capital

Subject to any restriction or prohibition in its articles, a private company may make a payment in respect of the redemption or purchase of its own shares otherwise than out of distributable profits or the proceeds of a fresh issue of shares, in other words, out of capital, but only in so far as those other sources of finance are not available or have already been used for that purpose1. The Act achieves

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