666. Treasury shares

(1) This section applies where—
(a) a limited company makes a purchase of its own shares in accordance with Chapter 4, and
(b) the purchase is made—
(i) out of distributable profits, or
(ii) with cash under section 631(1)(b).
(2) Where this section applies the company may—
(a) hold the shares (or any of them), or
(b) deal with any of them, at any time, in accordance with section 668 or 670.
(3) Where shares are held by the company, the company must be entered in its register of members as the member holding the shares.
(4) In these Regulations references to a company holding shares as treasury shares are to the company holding shares that—
(a) were (or are treated as having been) purchased by it in circumstances in which this section applies, and
(b) have been held by the company continuously since they were so purchased (or treated as purchased).