68 Clause 45, page 50, line 1, leave out subsection (4) and insert:
("(4) A company may only make an off-market purchase of its own shares in pursuance of a contract approved in advance in accordance with the following provisions of this section or under section (Contingent purchase contracts) of this Act.
(4A) The terms of the proposed contract of purchase must be authorised by a special resolution of the company before the company enters into the contract.").
§ Lord Mackay of Clashfern
My Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 68, and at the same time I wish to speak to Commons Amendments Nos. 69 to 79.
Amendment No. 79 makes a provision enabling companies to enter into contracts for an option to purchase their own shares and other contingent contracts of purchase, subject to appropriate safeguards. The other amendments are technical, consequential, or of a drafting character. The main points of substance that underlie them are the objectives of ensuring that the terms of a contract to purchase own shares are authorised prior to the conclusion of the contract and that names of members holding shares to be purchased are available to all members when the terms are to be authorised. I beg to move.
§ Moved, That this House doth agree with the Commons in the said amendment.—(Lord Mackay of Clashfern.)
§ As an amendment to Amendment No. 68:
§ 68A Line 1, at beginning insert ("Subject to subsection (4) of section (Contingent purchase contracts).
Lord Bruce of Donington
My Lords, I beg to move Amendment No. 68A as an amendment to Amendment No. 68.
§ Moved, That this House doth agree with the amendment to the amendment.—(Lord Bruce of Donington.)
§ On Question, amendment to the amendment negatived.
§ On Question, Motion agreed to.