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Section 528 of The Companies Act No. 17 of 2015: Exercise of rights in respect of treasury shares

    

(1) This section applies to a company that holds shares as treasury shares.
(2) The company may not exercise any right in respect of the treasury shares,including any right to attend or vote at company meetings.
(3) Any purported exercise of such a right is void.
(4) No dividend can be paid, and no other distribution (whether in cashor otherwise) of the company's assets (including any distribution of assets to members on a liquidation) can be made to the company, in respect of the treasury shares.
(5) Nothing in this section prevents—
(a) an allotment of shares as fully paid bonus shares in respect of the treasury shares; or
(b) if the treasury shares are redeemable shares—the payment of an amount payable on the redemption of the shares.
(6) In circumstances in which section 526(1) applies, shares allotted as fully paid bonus shares in respect of the treasury shares are to be treated as if purchased by the company at the time they were allotted.

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

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