COMPANIES ACT - 1963 (ACT 179)

    Section - 63 - Share deals Account

    (1) When a company first redeems or purchases any of its shares, otherwise than on a redemption of redeemable preference shares out of the proceeds of a fresh issue of shares in accordance with paragraph (b) of subsection (1) of section 60 of this Code, it shall open an account, to be known as the share deals account and shall credit thereto a sum not less than the amount to be expended on such redemption or purchase by transferring such sum from income surplus, as defined in section 70 of this Code.

    (2) There shall be debited to the share deals account all sums which the company shall from time to time expend on the redemption or purchase of any of its shares, otherwise than on a redemption of redeemable preference shares out of the proceeds of a fresh issue of shares in accordance with the said paragraph (b) of subsection (1) of section 60 of this Code, and to such account shall be credited the net price or the value of the consideration received by the company on the re-issue of any of its treasury shares.

    (3) If at any time the total amount to be debited to the share deals account under subsection (2) of this section exceeds the amount credited thereto in accordance with subsections (1) and (2) of this section, an amount equal to such excess shall be transferred to the credit of such account from income surplus, as defined in section 70 of this Code, and no purchase or redemption, otherwise than a redemption of redeemable preference shares out of the proceeds of a fresh issue of shares in accordance with the said paragraph (b) of subsection (1) of section 60 of this Code, shall be made by the company unless its income surplus is sufficient to enable such transfer to be made.

    (4) No amount shall be debited or credited to the share deals account, otherwise than in accordance with the foregoing subsections of this section, except on a transfer to stated capital in accordance with section 66 of this Code or under an order of the Court under section 77 or 231 of this Code.

    (5) A true copy of the share deals account, showing the class and number of shares involved in each transaction and the price paid or received therefor, shall be kept in a separate book at the registered office of the company and shall during business hours, subject to such reasonable restrictions as the company's Regulations may impose but so that not less than two hours in each day, other than a Saturday, Sunday or public holiday, be allowed for inspection, be open to the inspection of any member without charge and of any other person on payment of two shillings and sixpence, or such less sum as the company may prescribe, for each inspection.

    (6) Any member or other person shall be entitled to be furnished, within ten days after he has made a request in that behalf to the company, with a copy of the share deals account or any part thereof at a charge not exceeding one shilling for every hundred words or part thereof.

    (7) If any inspection required under subsection (5) of this section is refused or if any copy required to be sent under subsection (6) of this section is not sent within the proper time, the company and every officer of the company who is in default shall be liable to a fine not exceeding five pounds for every day during which the default continues, and the Court may by order compel an immediate inspection or furnishing of a copy, as the case may be.