653. Requirements for payment out of capital

(1) A payment out of capital by a private company for the redemption or purchase of its own shares is not lawful unless the requirements of the following sections are met—
(a) section 654 (directors' statement),
(b) section 656 (approval by special resolution),
(c) section 659 (public notice of proposed payment), and
(d) section 660 (directors' statement to be available for inspection).
(2) This is subject to section 661 (reduced requirements for payment out of capital for purchase of own shares for the purposes of or pursuant to an employees' share scheme) and to any order of the Court under section 663 (power of Court to extend period for compliance on application by persons objecting to payment).