Section 165 Authority for contingent purchase contract.

England, Wales and Scotland

(1)

A contingent purchase contract is a contract entered into by a company and relating to any of its shares—

(a)

which does not amount to a contract to purchase those shares, but

(b)

under which the company may (subject to any conditions) become entitled or obliged to purchase those shares.

(2)

A company may only make a purchase of its own shares in pursuance of a contingent purchase contract if the contract is approved in advance by a special resolution of the company before the contract is entered into; and subsections (3) to (7) of section 164 apply to the contract and its terms.

Notes on Chapter VII

Textual amendments

F1: Ss. 126-182 repealed (1.10.2009) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 (with arts. 5, 7, 8, Sch. 2 (as amended by S.I. 2009/1802, art. 18, Sch.))