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Section 694: Authority for off-market purchase

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 18: Acquisition by limited company of its own shares — Chapter 4: Purchase of own shares

Subject to section 693A, A company may only make an off-market purchase of its own shares in pursuance of a contract approved prior to the purchase in accordance with this section.

Either—

the terms of the contract must be authorised by a . . . resolution of the company before the contract is entered into, or
the contract must provide that no shares may be purchased in pursuance of the contract until its terms have been authorised by a . . . resolution of the company.

The contract may be a contract, entered into by the company and relating to shares in the company, that does not amount to a contract to purchase the shares but under which the company may (subject to any conditions) become entitled or obliged to purchase the shares.

The authority conferred by a resolution under this section may be varied, revoked or from time to time renewed by a . . . resolution of the company.

In the case of a public company a resolution conferring, varying or renewing authority must specify a date on which the authority is to expire, which must not be later than five years after the date on which the resolution is passed.

A resolution conferring, varying, revoking or renewing authority under this section is subject to—

  • section 695 (exercise of voting rights), and

  • section 696 (disclosure of details of contract).

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

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