Section 61 - Acquisition by company of its own shares

(1) Despite section 58 a company may,

(a) create and issue preference shares which are, or at the option of the company are liable, to be redeemed and may convert existing shares, whether issued or not, into those redeemable preference shares subject to sections 62 to 65;

(b) purchase its own shares subject to sections 63 to 67;

(c) acquire its own shares by a voluntary transfer to the company or to nominees for the company subject to compliance with sections 62 to 65; and

(d) acquire its own shares pursuant to the buy-out provisions in section 222.

(2) For the purposes of subsection (1), shares shall not be redeemed, purchased or acquired by the company so long as there is an unpaid liability on those shares.

(3) A company may forfeit the shares issued with an unpaid liability for non-payment of the sums of money due and payable on those shares.

(4) On redemption, purchase, acquisition or forfeiture, shares shall be available for re-issue by the company unless a company by amendment of the constitution of the company cancels those shares.

(5) Shares which are cancelled by virtue of the constitution of the company, shall until re-issued or cancelled, be referred to as treasury shares.

(6) Except as provided in section 69, a redemption, purchase, an acquisition or a forfeiture by the company of the shares of the company, or the cancellation of shares so redeemed, purchased, acquired or forfeited shall not reduce the stated capital of the company.

(7) Voting rights shall not be exercised and dividends shall not be payable on treasury shares, and except where otherwise stated, treasury shares shall not be treated as issued shares within the meaning of this Act.