A limited company may buy back shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. This is known as a share buyback or a purchase of own shares. For an introduction to share buybacks, see Practice Note: How to carry out a share buyback. Deferred payment for shares bought back Shares that are bought back (other than by a private limited company for the purposes of, or pursuant to, an employees' share scheme) must be paid for on purchase pursuant to CA 2006, s 691. The equivalent provisions of the Companies Act 1985 (CA 1985), sections 159(3) and 162(2) (now repealed), have been interpreted by the court as meaning deferred consideration for a buyback of shares is not permitted including, in particular, payment in instalments (Pena v