669 Transfer to reserve on acquisition of shares by public company or nominee
669 Transfer to reserve on acquisition of shares by public company or nominee
Companies Act 2006 | Legislation

(1)     Where—

(a)     a public company, or a nominee of a public company, acquires shares in the company, and

(b)     those shares are shown in a balance sheet of the company as an asset,

an amount equal to the value of the shares must be transferred out of profits available for dividend to a reserve fund and is not then available for distribution.

(2)     Subsection (1) applies to an interest in shares as it applies to shares.