Buy Back - Business

The other way is out of Capital s.709

Golden rule: Maintain Capital

So again: 

- Company articles must not prohibit this S.709(1)
- Shares must be fully paid s.691(1) 
- at the time of purchase s. 691(2) and 
- the directors must make a Statement of Solvency which must state that the company is and will remain solvent for the next 12 months (s714) after the buy-back. (Consequences of criminal sanctions s.715)
- must make this statement no sooner than a week before the GM (s.716(2)

Amount of capital is restricted to Permissable Capital Payment (PCP) (ss710-712) auditors must produce a report stating no reason to think statement unreasonable s.714(6) 

BM to call GM and BR for auditors report and statement.

Approved by SH on OR/ WR and
A SR must be passed for payment out of capital S.716(1)
Again rule that the shares in question do not count in…