The Companies Act No. 17 of 2015Section 527 of The Companies Act No. 17 of 2015: Treasury shares: maximum holdings
(1) If a company has shares of only one class, the company shall ensure that the aggregate nominal value of shares held as treasury shares does not at any time exceed ten per cent of the nominal value of the issued share capital of the company at that time.
(2) If the share capital of a company is divided into shares of different classes, the company shall ensure that the aggregate nominal value of the shares of any class held as treasury shares does not at any time exceed ten per cent of the nominal value of the issued share capital of the shares of that class at that time.
(3) A company that has, as a result of having failed to comply with subsection(1) or (2), excess shares shall dispose of, or cancel, those shares in accordance with section 529 or 530 before the end of twelve months from and including the date on which the failure first occurs.
(4) For the purpose of subsection (3), excess shares are such number of the shares held by the company as treasury shares at the relevant time as resulted in the limit being exceeded.
(5) If a company purchases qualifying shares out of distributable profits as referred to in section 526 and, because of the purchase, the company would fail to comply with subsection (1) or (2), the purchase is not void because of section 424.
Check the current authoritative text and amendment history before relying on this provision.
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