733 The capital redemption reserve
733 The capital redemption reserve
Companies Act 2006 | Legislation

(1)     In the following circumstances a company must transfer amounts to a reserve, called the “capital redemption reserve”.

(2)     Where under this Part shares of a limited company are redeemed or purchased wholly out of the company's profits, the amount by which the company's issued share capital is diminished in accordance with—

(a)     section 688(b) (on the cancellation of shares redeemed), or

(b)     section 706(b)(ii) (on the cancellation of shares purchased),

must be transferred to the capital redemption reserve.

(3)     If—

(a)     the shares are redeemed or purchased wholly or partly out of the proceeds of a fresh issue, and


725 . . .

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