Interpretation Registrar to Specify Forms References to Parent Company Forming Incorporated Company Requirements to Memorandum Powers of a Company Power Limited by Memorandum Exclusion of Deemed Notice Signature of Memorandum Memorandum Alteration Alteration of Objects Regulations for Companies Regulations for Unlimited Company Adoption and Application of Table A Printing and Signature of Articles Alteration of Articles Statutory Forms of M & AA Registration of M & AA Effect of Registration Power of Company to Hold Lands Certificate of Incorporation Unlimited Companies Reregistration Company Name Restrictions Power to Dispense Change of Name Company's Misleading Name Specification of Names Index of Company Names Effect of Memorandum & Articles Companies Limited by Guarantee Alterations in Memorandum & Articles Power to Alter Conditions Copies of Memorandum & Articles Issued Copies of Memorandum Definition of Member Membership of Holding Company Meaning of Private Company Private Company Privileges Form of Contracts Pre-incorporation Contracts Bills of Exchange & Promissory Notes Execution of Deeds Abroad Power to Have Official Seal Authentication of Documents Dating of Prospectus Specific Requirements Exemption from Compliance Advertisements on Prospectuses Publishing Guildelines by Commission Expert's Consent Registration of Prospectus One Document Prospectus More Than One Document Prospectus Submission of Certified Copies Civil liability for Misstatements Criminal Liability for Misstatements Right to Damages and Compensation Offer of Shares or Debentures Interpretation of Provisions Prohibition of Allotment: Subscription Prohibition of Allotment: Statement Effect of Irregular Allotment Applications for Shares & Debentures Allotment of Shares and Debentures Return as to Allotments Power to Pay Commissions Financial assistance prohibited Definitions Transactions not prohibited by 47A Restriction for Listed Companies Section 47A for Unlisted Companies Statement Under Section 47E Special Resolution Under Section 47E Financial assistance under section 47E Offering Shares to the Public Premiums on Issue of Shares Merger Relief Relief of Group Reconstructions Provisions to Sections 48C and 48D Relief from Section 48B Power to Issue Redeemable Shares Financing of Redemption Company Power to Purchase Shares Requirements for Listed Company Payments Apart From Purchase Price Authority for Purchase Authority for Purchase Contract Assignment of Right to Purchase Shares Disclosure of Share Purchase Capital Redemption Reserve Power to Redeem Shares out of Capital Availability of Profits Conditions for Payment out of Capital Procedure for Special Resolution Publicity for Proposed Payment Objections by Company's Members Powers of Court on Application Effect of Company's Failure to Redeem Power to Modify Certain Sections Transitional Cases: Sections 49 to 49S Definitions for Sections 49 to 49R Power to Issue Shares at a Discount Arrangement for Amounts Paid on Shares Reserve Liability of Limited Company Power to Alter Share Capital Share Capital Consolidation Notice of Increase of Capital Reserve Share Capital on Re-registration Power of Company to Pay Interest Non Voting Shares Approval for Allotment of Shares Validation of Shares Improperly Issued Resolution for Share Capital Reduction Application for Confirming Order Order Confirming Reduction Registration of Order Registration of Special Resolution Liability of Members Concealing Name of Creditor Variation of rights Rights of Shareholders Documents on Shareholder Rights Nature of Shares Numbering of Shares Transfer not to be Registered Transfer by Personal Representative Registration of Transfer Notice of Refusal to Register Transfer Certification of Transfers Issue of Certificates Certificate to be Evidence of Title Replacement of Lost Certificate Evidence of Grant of Probate Share Warrants to Bearer Official Seals for Share Certificates Making Compensation for Losses Register of Debenture Holders Provision of Instrument Register of Debenture Holders Meetings of Debenture Holders Liability of Trustees Perpetual Debentures Power to Re-issue Redeemed Debentures Contracts to Subscribe for Debentures Payment of Certain Debts Interpretation Certain Distributions Prohibited Restriction on Distribution of Assets Exemption of Certain Companies Realised Profits of Insurance Company Distribution to Be Justified Last Annual Accounts Requirement for Interim Accounts Requirements for Initial Accounts Method of Applying Section 79F Treatment of Assets Distributions in Kind Consequences of Unlawful Distribution Saving for Provision in Articles Application to Certain Companies Saving for Other Distribution Restraints Registration of Charges Charges Created by the Company Charges Existing on Property Charges to be Kept by Registrar Entries of Satisfaction Extension of Time for Registration Appointment of Receiver or Manager Copies of Instruments Company's Register of Charges Right to Inspect Instrument Copies Application of Part III Registered Office of Company Publication of Name of Company Adequacy of Certain Descriptions Register of Members Company Statement Index of Members of Company Entries in Register to Share Warrants Inspection of Register of Members Failure to Comply with Requirements Power to Close Register of Members Power of Court to Rectify Register Trusts not Entered on Register Register to be Evidence Keeping Branch Register Regulations as to Branch Register Registers of Oversea Companies Company Annual Return General Provisions: Annual Returns Certificates Sent by Private Company Annual General Meeting Extraordinary General Meeting Notice for Calling Meetings Meetings and Votes Quorum: One Company Member Power of Court to Order Meeting Proxies Right to Demand a Poll Voting on a Poll Representation of Companies Circulation of Members' Resolutions Special Resolutions Restriction on Alteration of Articles Written Resolutions of Companies Duty to Notify Auditors Written Resolutions: Supplementary Written Record Resolutions Requiring Special Notice Certain Resolutions and Agreements Resolutions at Adjourned Meetings Minutes of Proceedings of Meetings Place to Keep Minute Book Inspection of Minute Books Keeping of Books of Account Profit and Loss Account Contents and Form of Accounts Obligation to Lay Group Accounts Form of Group Accounts Contents of Group Accounts Financial Year of Holding Company Particulars in Relation to Subsidiaries Companies not being Subsidiaries Subsidiary Company's Accounts Signing of Balance Sheet Accounts and Auditors' Report Directors' Report Proviso to Section 141C Sections 129D and 129E Right to Receive Copies Appointment & Removal of Auditors Supplementary Provisions Powers of Auditors False Statements to Auditors Disqualifications: Auditor Appointment Resignation of Auditor Right of Auditor who Resigns Auditor's Report and Rights Construction of References Restrictions on Financial Reports Notices of Intent Relevant Dates Duties of Listed Companies Financial Reports not to be Sent Form and Contents of Reports Prohibition Orders Compliance with Section 129G Requirements as to Accounts Investigation of Company Affairs Company Affairs in Other Cases Power of an Inspector Documents on Investigation Delegation of Powers by Inspector Power to Call for Director's Accounts Inspector's Report Extension of Secretary's Powers Expenses of Investigation Inspector's Report to be Evidence

Companies Ordinance Cap 32

Section Num: 49BA     Version Date 13/02/2004

Requirements for listed company to purchase own shares

(1) A listed company may purchase its own shares-

(a) subject to subsections (2), (3) and (7), under a general offer;

(b) subject to subsections (2), (3) and (4), on a recognized stock market or on an approved stock exchange;

(c) subject to subsections (5) and (6), otherwise than on a recognized stock market or on an approved stock exchange, and otherwise than under a general offer referred to in paragraph (a).  (Amended 5 of 2002 s. 407)

(2) A listed company shall not-

(a) make a general offer under subsection (1)(a) unless the proposed general offer is authorized by the company in general meeting; or

(b) purchase any of its own shares on a recognized stock market or on an approved stock exchange under subsection (1)(b), unless the proposed purchase is authorized by the company in general meeting.  (Amended 5 of 2002 s. 407)

(3) A listed company shall include together with the notice of any general meeting called for the purpose of subsection (2)-

(a) in the case of a general offer under subsection (1)(a)-

(i) a copy of the document containing the proposed general offer;

and

(ii) a statement, signed by the directors of the company,

containing such particulars as would enable a reasonable person to form as a result thereof a valid and justifiable opinion as to the merits of the proposed general offer; and

(b) in the case of a purchase under subsection (1)(b), a memorandum of the terms of the proposed purchase.

(4) An authorization given by a company in general meeting under subsection (2)(b) shall be valid for the period expiring on the date of the next annual general meeting of the company and such period may be extended by the company at such annual general meeting until the date of the next annual general meeting of the company.

(5) A listed company shall not make a purchase of any of its shares under subsection (1)(c) unless the proposed purchase has been authorized by a special resolution of the company and section 49D(4) shall apply to such a resolution as it applies to a resolution under that subsection.

(6) A listed company shall include together with the notice of any meeting called for the purpose of subsection (5)-

(a) where the proposed purchase agreement is in writing, a copy of the proposed purchase agreement; or

(b) where the proposed purchase agreement is not in writing, a memorandum of the terms of the proposed purchase agreement; and

(c) a statement, signed by the directors of the company, after having made due and diligent inquiry of the members of the company holding the shares to which the proposed purchase agreement relates, containing such particulars as would enable a reasonable person to form as a result thereof a valid and justifiable opinion as to the merits of the proposed purchase agreement.

(7) If, in the case of a general offer under subsection (1)(a), a member of the company may be compelled to dispose of his shares under section 168B-

(a) the company shall appoint an independent investment adviser to advise members who may be affected by the compulsory disposal on the merits of the proposed general offer; and

(b) the proposed general offer shall be authorized by a special resolution of the company, on which no relevant shareholder votes and for this purpose-

(i) a relevant shareholder shall be regarded as voting not only if he votes on a poll on the question whether the resolution shall be passed, but also if he votes on the resolution otherwise than on a poll;

(ii) notwithstanding anything in the company's articles, any member of the company may demand a poll on that question; and

(iii) a vote and a demand for a poll by a person as proxy for a relevant shareholder are the same (respectively) as a vote and demand by a relevant shareholder.

(8) A person shall not be appointed as an investment adviser under subsection (7) unless he is a corporation licensed to carry on, or an authorized financial institution registered for carrying on, a business in advising on securities or advising on corporate finance under Part V of the Securities and Futures Ordinance (Cap 571) and is neither-  (Amended 5 of 2002 s. 407)

(a) a member, officer or employee of the company making the general offer or of a related company thereof; nor

(b) a related company of the company making the general offer.

(9) For the purposes of this section- "approved stock exchange" means a stock exchange approved, by notice published in the Gazette, for the purposes of this section by-

(a) the Commission; and

(b) the recognized exchange company that operates the recognized stock market on which the shares concerned are listed;  (Added 5 of 2002 s. 407)

"general offer" means an offer to all members of a company or to all members holding shares of a particular class in a company, other than any members residing in a jurisdiction where such an offer is contrary to the laws of that jurisdiction, on terms which are the same in relation to all such shares or in relation to the shares of each class;

"related company" in relation to a company, means any company that is the company's subsidiary or holding company or a subsidiary of that company's holding company;

"relevant shareholder" means a person to whom the description

"relevant shareholder" in the Thirteenth Schedule applies.

(10) In the application of the definition of "officer" in section 2(1) to subsection (8), "director" includes-

(a) any person occupying the position of director, by whatever name called; and

(b) a shadow director.  (Replaced 28 of 2003 s. 19)

(11) The Commission may exempt any listed company from any of the provisions of this section, subject to such conditions as it thinks fit.

(12) The Commission may-

(a) suspend or withdraw an exemption granted under subsection (11) on the ground that the conditions subject to which the exemption was granted have not been complied with or on such other ground as the Commission thinks fit; or

(b) vary any condition imposed under subsection (11).

(Added 77 of 1991 s. 4. Amended 86 of 1992 s. 10; 5 of 2002 s. 407)

Learn more at our information center

Request detailed information!