In respect of the purchasing its own shares, the rules for a 1931 Company are complex but the answer is ‘Yes’. The relevant provisions are contained in part 4 the 1992 Act – Special Resolutions are required and there are also prescriptive requirements for making contracts available for inspection. Additionally, of course, only distributable reserves are able to be applied for this purpose. In practice, at least for a private company, it would be easier to convert the company to a 2006 one company before progressing this.
The position for 2006 Act Companies is much more straightforward. The rules contained in Sections 52 & 53 – this basically says its permitted but it has to be fair on the remaining shareholders and there are certain safeguards which ensure this.