687 Financing of redemption
687 Financing of redemption
Companies Act 2006 | Legislation

(1)     A private limited company may redeem redeemable shares out of capital in accordance with Chapter 5.

(2)     Subject to that, redeemable shares in a limited company may only be redeemed out of—

(a)     distributable profits of the company, or

(b)     the proceeds of a fresh issue of shares made for the purposes of the redemption.

(3)     Any premium payable on redemption of shares in a limited company must be paid out of distributable profits of the company, subject to the following provision.

(4)     If the redeemable shares were issued at a premium, any premium payable on their redemption may be paid out of the proceeds of a fresh issue of shares made for the purposes of the redemption, up to an amount equal to—