731 Treasury shares: treatment of proceeds of sale
731 Treasury shares: treatment of proceeds of sale
Companies Act 2006 | Legislation

(1)     Where shares held as treasury shares are sold, the proceeds of sale must be dealt with in accordance with this section.

(2)     If the proceeds of sale are equal to or less than the purchase price paid by the company for the shares, the proceeds are treated for the purposes of Part 23 (distributions) as a realised profit of the company.

(3)     If the proceeds of sale exceed the purchase price paid by the company—

(a)     an amount equal to the purchase price paid is treated as a realised profit of the company for the purposes of that Part, and

(b)     the excess must be transferred to the company's share premium account.

(4)     For the purposes of this section—