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Section 720B: Registration of resolution and supporting documents for purchase of own shares for the purposes of or pursuant to an employees' share scheme

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

Within 15 days after the passing of the resolution for a payment out of capital by a private company for the purchase of its own shares for the purposes of or pursuant to an employees' share scheme the company must deliver to the registrar–

a copy of the solvency statement,
a copy of the resolution, and
a statement of capital.

The statement of capital must state with respect to the company's share capital as reduced by the resolution—

the total number of shares of the company,
the aggregate nominal value of those shares,
the aggregate amount (if any) unpaid on those shares (whether on account of their nominal value or by way of premium), and
for each class of shares—
prescribed particulars of the rights attached to the shares,
the total number of shares of that class, and
the aggregate nominal value of shares of that class, ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The registrar must register the documents delivered to him under subsection (1) on receipt.

The resolution does not take effect until those documents are registered.

The company must also deliver to the registrar, within 15 days after the resolution is passed, a statement by the directors confirming that the solvency statement was—

made not more than 15 days before the date on which the resolution was passed, and
provided to members in accordance with section 720A(3) or (4).

The validity of a resolution is not affected by—

a failure to deliver the documents required to be delivered to the registrar under subsection (1) within the time specified in that subsection, or
a failure to comply with subsection (5).

If the company delivers to the registrar a solvency statement that was not provided to members in accordance with section 720A(3) or (4), an offence is committed by every officer of the company who is in default.

If default is made in complying with this section, an offence is committed by–

the company, and
every officer of the company who is in default.

A person guilty of an offence under subsection (7) or (8) is liable–

on conviction on indictment, to a fine;
on summary conviction, to a fine not exceeding the statutory maximum.

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.