(1) A private limited company may purchase its own shares out of capital in accordance with Chapter 5.
(1ZA) If authorised to do so by its articles, a private limited company may purchase its own shares out of capital otherwise than in accordance with Chapter 5, up to an aggregate purchase price in a financial year of the lower of -
(a) £15,000, or
(b) the nominal value of 5% of its fully paid share capital as at the beginning of the financial year.
(1A) If the share capital of the company is not denominated in sterling, the value in sterling of the share capital shall be calculated for the purposes of subsection (1ZA)(b) at an appropriate spot rate of exchange.
(1B) The rate must be a rate prevailing on a day specified in the resolution authorising the purchase of the shares.
(2) Subject to subsections (1) and (1ZA) -
(a) a limited company may only purchase its own shares out of -
(i) distributable profits of the company, or
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