Companies (Amendment) Act, 1983
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Restriction on company acquiring its own shares. |
41.—(1) Subject to the following provisions of this section, no company limited by shares or limited by guarantee and having a share capital shall acquire its own shares (whether by purchase, subscription or otherwise). | |
(2) A company limited by shares may acquire any of its own fully paid shares otherwise than for valuable consideration. | ||
(3) If a company purports to act in contravention of this section the company and every officer of the company who is in default shall be guilty of an offence and the purported acquisition shall be void. | ||
(4) Subsection (1) shall not apply in relation to— | ||
(a) the redemption of preference shares in pursuance of the articles; | ||
(b) the acquisition of any shares in a reduction of capital duly made; | ||
(c) the purchase of any shares in pursuance of an order of the court under section 15 or under section 10 or section 205 of the Principal Act; or | ||
(d) the forfeiture of any shares, or the acceptance of any shares surrendered in lieu, in pursuance of the articles for failure to pay any sum payable in respect of those shares. |