661. Reduced requirements for payment out of capital for purchase of own shares for the purposes of or pursuant to an employees' share scheme
Past version: effective from 14/06/2015 - 13/06/2015
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(1) Section 653(1) does not apply to the purchase out of capital by a private company of its own shares for the purposes of or pursuant to an employees' share scheme when approved by special resolution supported by a solvency statement.
(2) For the purposes of this section a resolution is supported by a solvency statement if—
(a) the directors of the company make a solvency statement (see section 584) not more than 15 days before the date on which the resolution is passed, and
(b) the resolution and solvency statement are registered in accordance with section 662.
(3) Where the resolution is proposed as a written resolution, a copy of the solvency statement must be sent or submitted to every eligible member at or before the time at which the proposed resolution is sent or submitted to the member.
(4) Where the resolution is proposed at a general meeting, a copy of the solvency statement must be made available for inspection by members of the company throughout that meeting.
(5) The validity of a resolution is not affected by a failure to comply with subsection (3) or (4).
(6) Section 657 (resolution authorising payment: exercise of voting rights) applies to a resolution under this section as it applies to a resolution under section 656.