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Section 710: The permissible capital payment

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

Part 18: Acquisition by limited company of its own shares — Chapter 5: Redemption or purchase by private company out of capital

The payment that may, in accordance with this Chapter, be made by a company out of capital in respect of the redemption or purchase of its own shares is such amount as, after applying for that purpose—

any available profits of the company, and
the proceeds of any fresh issue of shares made for the purposes of the redemption or purchase,

is required to meet the price of redemption or purchase.

That is referred to below in this Chapter as "the permissible capital payment" for the shares.

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