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Section 713: Requirements for payment out of capital

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

A payment out of capital by a private company for the redemption or purchase of its own shares is not lawful unless the requirements of the following sections are met—

  • section 714 (directors' statement and auditor's report);

  • section 716 (approval by special resolution);

  • section 719 (public notice of proposed payment);

  • section 720 (directors' statement and auditor's report to be available for inspection).

This is subject to section 720A and to any order of the court under section 721 (power of court to extend period for compliance on application by persons objecting to payment).

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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.