Section 54

Subject to any relevant modification, an IBC may purchase, redeem or otherwise acquire and hold its own shares, either by using surplus or in exchange for newly issued shares of equal value.

Subject to subsection (1), an IBC may not purchase, redeem or otherwise acquire its own shares without the consent of the member who holds the shares unless the IBC is permitted to purchase, redeem or otherwise acquire the shares without that consent by virtue of –

Subject to subsection (4), no purchase, redemption or other acquisition permitted under subsection (1) may be made unless the directors, following due enquiry made by them, determine that, immediately after the purchase, redemption or other acquisition, the solvency conditions will be fulfilled, and, in the absence of fraud, the decision of the directors as to the realisable value of the assets of the IBC is conclusive for this purpose, except in so far as a question of law may be involved.

A determination by the directors under subsection (3) shall not be required where shares are purchased, redeemed or otherwise acquired –

Subject to any relevant modification, shares that an IBC purchases, redeems or otherwise acquires may be cancelled or held as treasury shares, except that, if the purchase, redemption or other acquisition would (apart from this subsection) result in a reduction in capital in a manner that would be a contravention of the requirements of section 56(2), the shares shall be cancelled but available for reissue.

Upon the cancellation of a share under subsection (5), the capital of the IBC shall be reduced by the amount included with respect to that share.

Subject to this Order, an IBC may purchase, redeem or otherwise acquire its own shares at a price lower than fair value if permitted by, and then only in accordance with –