Section 713 | Requirements for payment out of capital

(1)A payment out of capital by a private company for the redemption or purchase of its own shares is not lawful unless the requirements of the following sections are met—

section 714 (directors' statement and auditor's report);

section 716 (approval by special resolution);

section 719 (public notice of proposed payment);

section 720 (directors' statement and auditor's report to be available for inspection).

(2)This is subject to section 720A and to any order of the court under section 721 (power of court to extend period for compliance on application by persons objecting to payment).^F1