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Section 526 of The Companies Act No. 17 of 2015: Treasury shares

    

(1) This section applies to a purchase or acquisition of shares by a limited company of its own shares in accordance with this Act and—
(a) the purchase or acquisition is made out of distributable profits; and (b) the shares are qualifying shares.
(2) Shares are qualifying shares for the purpose of subsection (1) if they—
(a) are included in the official list in accordance with the provisions of the Capital Markets Act (Cap. 485A); or (b) are traded on a regulated market.
(3) When this section applies, the company concerned may—
(a) hold the shares, or any of them; or
(b) deal with any of them, at any time, in accordance with section 529 or 530.
(4) If shares are held by the company as treasury shares, the company shall enter itself in its register of members as the member holding the shares.
(5) In this Act, 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 or acquired by it in circumstances in which this section applies; and
(b) have been held by the company continuously since they were so purchased or acquired, or treated as purchased or acquired.

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Disclaimer: This document is not to be taken as legal advise.

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