—(1) This section shall apply to shares which are held by a company as treasury shares.
(2) The company shall not exercise any right in respect of the treasury shares and any purported exercise of such a right is void.
(3) The rights to which subsection (2) applies include any right to attend or vote at meetings (including meetings under section 210) and for the purposes of this Act, the company shall be treated as having no right to vote and the treasury shares shall be treated as having no voting rights.
(4) No dividend may be paid, and no other distribution (whether in cash or otherwise) of the company’s assets (including any distribution of assets to members on a winding up) may be made, to the company in respect of the treasury shares.
(5) Nothing in this section is to be taken as preventing —
an allotment of shares as fully paid bonus shares in respect of the treasury shares; or
the subdivision or consolidation of any treasury share into treasury shares of a smaller amount, if the total value of the treasury shares after the subdivision or consolidation is the same as the total value of the treasury share before the subdivision or consolidation, as the case may be.
(6) Any shares allotted as fully paid bonus shares in respect of the treasury shares shall be treated for the purposes of this Act as if they were purchased by the company at the time they were allotted, in circumstances in which section 76H applied.
[UK, 1985, s. 162C; UK, Treasury Shares, reg. 3]