Section 162A: Treasury shares

Companies Act 1985 · 1985 c. 6View on legislation.gov.uk

Part V: Share Capital, its Increase, Maintenance and Reduction — Chapter VII: Redeemable Shares; Purchase by a Company of its Own Shares

Where qualifying shares are purchased by a company out of distributable profits in accordance with section 162, the company may—

hold the shares (or any of them), or
deal with any of them, at any time, in accordance with section 162D.

Where shares are held under subsection (1)(a) then, for the purposes of section 352, the company must be entered in the register as the member holding those shares.

In this Act, references to a company holding shares as treasury shares are references to the company holding shares which—

were (or are treated as having been) purchased by it in circumstances in which this section applies, and
have been held by the company continuously since they were so purchased.

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Reuse reviewed 21 August 2026 under Open Government Licence v3.0.