{
  "url": "https://openlegislation.uk/companies-act-1985/section-168",
  "json_url": "https://openlegislation.uk/companies-act-1985/section-168.json",
  "legislation": "ukpga/1985/6",
  "legislation_title": "Companies Act 1985",
  "legislation_url": "https://openlegislation.uk/companies-act-1985",
  "path": "section/168",
  "kind": "section",
  "number": "168",
  "heading": "Payments apart from purchase price to be made out of distributable profits.",
  "text": "(1) A payment made by a company in consideration of—\n(a) acquiring any right with respect to the purchase of its own shares in pursuance of a contract approved under section 165, or\n(b) the variation of a contract approved under section 164 or 165, or\n(c) the release of any of the company’s obligations with respect to the purchase of any of its own shares under a contract approved under section 164 or 165 or under a contract for a purchase authorised under section 166,\nmust be made out of the company’s distributable profits.\n(2) If the requirements of subsection (1) are not satisfied in relation to a contract—\n(a) in a case within paragraph (a) of the subsection, no purchase by the company of its own shares in pursuance of that contract is lawful under this Chapter,\n(b) in a case within paragraph (b), no such purchase following the variation is lawful under this Chapter, and\n(c) in a case within paragraph (c), the purported release is void.",
  "extent": "E+W+S",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1985/6/section/168",
    "retrieved_at": "2026-10-29T10:00:40.159612+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}