640. Release of company's rights under contract for off-market purchase

(1) An agreement by a company to release its rights under a contract approved under section 634 (authority for off-market purchase) is void unless the terms of the release agreement are approved in advance in accordance with this section.
(2) The terms of the proposed agreement must be authorised by a resolution of the company before the agreement is entered into.
(3) That authority may be varied, revoked or from time to time renewed by a resolution of the company.
(4) In the case of a public company a resolution conferring, varying or renewing authority must specify a date on which the authority is to expire, which must not be later than five years after the date on which the resolution is passed.
(5) The provisions of—
(a) section 638 (exercise of voting rights), and
(b) section 639 (disclosure of details of variation),
apply to a resolution authorising a proposed release agreement as they apply to a resolution authorising a proposed variation.