COMPANIES ACT - 1963 (ACT 179)

    Section - 59 - Acquisition by Company of its Own Shares

    (1) Notwithstanding section 56 of this Code, a company may, if authorised by its Regulations and subject to compliance with sections 60 to 63 of this Code,

    (a) create and issue preference shares which are, or at the option of the company are liable, to be redeemed on such terms and in such manner as may be provided in the Regulations and may convert existing shares, whether issued or not, into such redeemable preference shares;

    (b) purchase its own shares;

    (c) acquire its own shares by a voluntary transfer to it or to nominees for it:

    Provided that no shares shall be redeemed, purchased or acquired by the company so long as there is an unpaid liability thereon.

    (2) Where authorised by its Regulations a company may forfeit any shares issued with an unpaid liability for non-payment of any sums due and payable thereon.

    (3) On redemption, purchase, acquisition or forfeiture shares shall be available for re-issue by the company unless the company by alteration of its Regulations cancels such shares; and in this Code, such shares, until re-issued or cancelled, shall be referred to as treasury shares.

    (4) Except as provided in section 67 of this Code, no redemption, purchase, acquisition or forfeiture by the company of its shares nor the cancellation of shares so redeemed, purchased, acquired or forfeited shall reduce the stated capital of the company.

    (5) No voting rights shall be exercised and no dividends shall be payable on any treasury shares, and, except where otherwise stated, treasury shares shall not be treated as issued shares within the meaning of the provisions of this Code.