Is a company allowed to purchase its own shares?
Yes, as long as the company's articles of association allow it to do so. There must be a written contract (or, if it is not in writing, a written memorandum of its main terms). An appropriate shareholders' resolution approving the contract will needs to be passed (see question 4).There are restrictions on companies purchasing their own shares if they do not have enough distributable profits to cover the price (see question 8).
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