When a private limited company buys back shares, those shares must be paid for on purchase, unless it is buying back the shares for the purposes of, or pursuant to, an employees' share scheme. Therefore, unless a private limited company is buying back shares for the purposes of, or pursuant to, an employees' share scheme, it is not possible for the company to defer payments or pay in instalments (Pena v Dale). Although shares that are bought back by a private limited company must be paid for on purchase