Companies Act 2014

320.

Holding of own shares or shares in holding undertaking

320. (1) Where a company, F113 [ a nominee of the company or a person acting in that person s own name but on behalf of the company ], holds shares in the company or an interest in such shares, such shares or interest shall not be shown as an asset but the consideration paid for such shares or interest—

(a) shall be shown in the company’s entity financial statements as a deduction from the company’s capital and reserves (and the profits available for distribution shall accordingly be restricted by the amount of such deduction); and

(b) shall be shown in the company’s group financial statements, if any, as a deduction from group capital and reserves.

(2) Where a company, F114 [ a nominee of the company or a person acting in that person s own name but on behalf of the company ], holds shares in its holding undertaking or an interest in such shares, the profits of the company available for distribution shall be restricted by the amount of the consideration paid for such shares or interest.

(3) In addition to the requirements of subsection (2), in the case of the holding of shares by a company, F115 [ a nominee of the company or a person acting in that person s own name but on behalf of the company, in its holding company (or the holding by a company, its nominee or a person acting in that person s own name but on behalf of the company of an interest in such shares) ], the consideration paid for such shares or interest shall be shown in the holding company’s group financial statements, if any, as a deduction from group capital and reserves.

(4) The notes to the company’s entity financial statements (and, as the case may be, the group financial statements of the company or its holding company) shall give separately for the shares referred to in each of the preceding subsections—

(a) the number and aggregate nominal value of those shares and, where shares of more than one class have been acquired, the number and aggregate nominal value of F116 [ each class of such shares, at the beginning and end of the financial year together with the consideration paid for such shares, ]

F117 [ (aa) a reconciliation of the number and nominal value of each class of such shares from the beginning of the financial year to the end of the financial year showing all changes during the financial year, including further acquisitions, disposals and cancellations, in each case showing the value of the consideration paid or received, if any,

(ab) the reasons for any acquisitions made during the financial year,

(ac) the proportion of called-up share capital held at the beginning and end of the financial year, and ]

(b) particulars of any restriction on profits available for distribution by virtue of the application of subsection (1) or (2).

Annotations:

Amendments:

F113

Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 36(a), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.

F114

Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 36(b), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.

F115

Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 36(c), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.

F116

Substituted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 36(d)(i), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.

F117

Inserted (9.06.2017) by Companies (Accounting) Act 2017 (9/2017), s. 36(d)(ii), S.I. No. 246 of 2017, art. 3, subject to transitional provision in art. 4.