New Clause 213

Company Law Reform Bill [Lords] – in a Public Bill Committee at 1:45 pm on 20th July 2006.

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Power of private limited company to redeem or purchase own shares out of capital

‘(1) A private limited company may in accordance with this Chapter, but subject to any restriction or prohibition in the company’s articles, make a payment in respect of the redemption or purchase of its own shares otherwise than out of distributable profits or the proceeds of a fresh issue of shares.

(2) References below in this Chapter to payment out of capital are to any payment so made, whether or not it would be regarded apart from this section as a payment out of capital.’.—[Margaret Hodge.]

Brought up, and added to the Bill.