UK Companies Act 2006 658-737: Acquisition of own shares: general prohibition, financial assistance (public companies), purchase of own shares and the return to the registrar

What does 658-737 require?

A limited company must not acquire its own shares except as Part 18 allows (section 658). A public company, and a private subsidiary of a public company, must not give financial assistance directly or indirectly for the purpose of the acquisition of shares in the company or its public holding company, subject to the purpose and conditional exceptions (sections 677 to 683), and contravention is an offence (section 680). A company may purchase its own shares out of distributable profits or a fresh issue (or, for a private company, out of capital or a small cash amount) under the authorisation rules for off-market purchases (special resolution with the contract available for inspection) and market purchases (ordinary resolution with limits), must cancel or hold the shares in treasury, and must deliver a return (SH03) to the registrar within 28 days with a notice of cancellation and statement of capital (sections 690 to 737).