76I. Treasury shares: maximum holdings

Question 1

76I. Treasury shares: maximum holdings

Answer 1

General overview
[76I.01] Section 76I states that the aggregate number of shares held as treasury shares shall not exceed 10% of the total number of shares of the company, or if the shares are divided into different classes, 10% of the total number of shares of the different classes.

Question 2

Ceiling of 20% under s 76B

Answer 2

[76I.02] Section 76B(3) provides that the maximum number of shares that a company may repurchase is 20% of the total number of shares in the company, or of the total number of shares in that class of shares. Of this 20%, a company may reserve 10% thereof as treasury shares pursuant to s 76H. The remaining 10% shall be deemed to have been cancelled under s 76B(5).

Question 3

Excess shares

Answer 3

[76I.03] Any excess shares, i.e treasury shares that exceed the 10% limit, has to be disposed of or cancelled within a period of six months after the limit is breached: s 76I(3) and (4).