Companies Act 2014 section 1039

Adaptation of section 102(1) and (2) in relation to a PLC

Section 1039 adapts the rules in section 102(1) and (2) — which set out the permissible circumstances and prohibitions for a company acquiring its own shares — so that they work correctly for public limited companies (PLCs).

• Section 102(1) and (2) govern when and how a company may lawfully acquire its own shares, and the prohibitions that apply.
• For a PLC, the cross-references in section 102 to Chapters 3 and 4 of Part 9 are redirected to Chapters 16 and 17 of Part 17 respectively.
• Chapters 16 and 17 of Part 17 contain the PLC-specific provisions that correspond to the private company rules in Part 9.
• This adaptation ensures that PLCs follow their own tailored share-acquisition regime rather than the private company rules.