646. Treatment of shares purchased

Where a limited company makes a purchase of its own shares in accordance with this Chapter, then—

(a) if section 666(treasury shares) applies, the shares may be held and dealt with in accordance with Chapter 6,
(b) if that section does not apply—
(i) the shares are treated as cancelled, and
(ii) the amount of the company's issued share capital is diminished accordingly by the issue price of the shares cancelled.