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Section 706: Treatment of shares purchased

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

Where a limited company makes a purchase of its own shares in accordance with this Chapter, then—

if section 724 (treasury shares) applies, the shares may be held and dealt with in accordance with Chapter 6;
if that section does not apply—
the shares are treated as cancelled, and
the amount of the company's issued share capital is diminished accordingly by the nominal value of the shares cancelled.

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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.