Can a Company acquire shares in itself?

Key words: share buy back, companies


Can a Company acquire shares in itself? 


The Corporations Act explicitly prohibits a Company from acquiring shares in itself except as permitted within the Act: see s 259A. For example, a Company can purchase its own shares if a) the buy-back does not materially prejudice the Company's ability to pay its creditors; and b) the Company follows the procedure laid out under the relevant Division of the Act: see s 257A for further information. 




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