646. Treatment of shares purchased

Where a limited company makes a purchase of its own shares in accordance with this Chapter, then-
(a) if section 666(treasury shares) applies, the shares may be held and dealt with in accordance with Chapter 6,
(b) if that section does not apply-
(i) the shares are treated as cancelled, and
(ii) the amount of the company’s issued share capital is diminished accordingly by the issue price of the shares cancelled.