Section 75: Enforceability of contract to repurchase shares

75. Enforceability of contract to repurchase shares (1) A contract with a company for the acquisition by the company of its shares shall be specifically enforceable against the company except to the extent that the company would, after performance of the contract, fail to satisfy the solvency test. (2) The company bears the burden of proving that performance of the contract would result in the company being unable to satisfy the solvency test. (3) Subject to subsection (1), where the company has entered into a contract for the acquisition by the company of its shares, the other party to the contract shall, on the conclusion of the contract, become a creditor and shall— (a) be entitled to be paid as soon as the company is lawfully able to do so; or C35 – 57 [Issue 10] Companies Act (b) prior to the removal of the company from the register of companies, be ranked subordinate to the rights of creditors but in priority to the other shareholders. Sub-Part E – Redemption of Shares