Companies Act 2014 section 1073

Authority for PLC's purchase of own shares

Section 1073 sets out the shareholder approval requirements that apply when a public limited company wishes to purchase its own shares.

  • The general authority for a company to buy its own shares under section 105(4) does not extend to PLCs.
  • A PLC must obtain specific shareholder authority before it can purchase its own shares.
  • A market purchase (under section 1074) requires an ordinary resolution of the PLC's shareholders.
  • An off-market purchase (under section 1075) requires a special resolution of the PLC's shareholders.

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