Treasury shares: cancellation
‘(1) Where shares are held as treasury shares, the company may at any time cancel the shares (or any of them).
(2) If shares held as treasury shares cease to be qualifying shares, the company must forthwith cancel the shares.
(3) For this purpose shares are not to be regarded as ceasing to be qualifying shares by virtue only of—
(a) the suspension of their listing in accordance with the applicable rules in the EEA state in which the shares are officially listed, or
(b) the suspension of their trading in accordance with—
(i) in the case of shares traded on the market known as the Alternative Investment Market, the rules of London Stock Exchange plc, and
(ii) in any other case, the rules of the regulated market on which they are traded.
(4) If company cancels shares held as treasury shares, the amount of the company’s share capital is reduced accordingly by the nominal amount of the shares cancelled.
(5) The directors may take any steps required to enable the company to cancel its shares under this section without complying with the provisions of Chapter (Reduction of share capital) of Part (A company’s share capital) (reduction of share capital).’.—[Margaret Hodge.]