# The Companies (Northern Ireland) Order 1986 (revoked), Article 178: Payments apart from purchase price to be made out of distributable profits

Extent: N.I.

(1) A payment made by a company in consideration of—
(a) acquiring any right with respect to the purchase of its own shares in pursuance of a contract approved under Article 175, or
(b) the variation of a contract approved under Article 174 or 175, or
(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 Article 174 or 175 or under a contract for a purchase authorised under Article 176,
must be made out of the company's distributable profits.
(2) If the requirements of paragraph (1) are not satisfied in relation to a contract—
(a) in a case within paragraph (1)(a), no purchase by the company of its own shares in pursuance of that contract is lawful under this Chapter,
(b) in a case within paragraph (1)(b), no such purchase following the variation is lawful under this Chapter, and
(c) in a case within paragraph (1)(c), the purported release is void.

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Source: https://www.legislation.gov.uk/nisi/1986/1032/article/178 (the official version)
Page: https://openlegislation.uk/companies-northern-ireland-order-1986-revoked/article-178
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.