Section 694 | Authority for off-market purchase

(1)Subject to section 693A, A company may only make an off-market purchase of its own shares in pursuance of a contract approved prior to the purchase in accordance with this section.^F1

(2)Either—

(a)the terms of the contract must be authorised by a . . . resolution of the company before the contract is entered into, or^F2

(b)the contract must provide that no shares may be purchased in pursuance of the contract until its terms have been authorised by a . . . resolution of the company.^F3

(3)The contract may be a contract, entered into by the company and relating to shares in the company, that does not amount to a contract to purchase the shares but under which the company may (subject to any conditions) become entitled or obliged to purchase the shares.

(4)The authority conferred by a resolution under this section may be varied, revoked or from time to time renewed by a . . . resolution of the company.^F4

(5)In the case of a public company a resolution conferring, varying or renewing authority must specify a date on which the authority is to expire, which must not be later than five years after the date on which the resolution is passed.^F5

(6)A resolution conferring, varying, revoking or renewing authority under this section is subject to—

section 695 (exercise of voting rights), and

section 696 (disclosure of details of contract).