It is no longer news that share buybacks is one of the innovations introduced by the Companies and Allied Matters Act 2020¹ (CAMA). Previously, section 160(1) and (2) CAMA 2004² generally prohibited companies from acquiring their own shares, except if authorised by the articles and in limited circumstances of: “(2) ….. (a) settling or compromising a debt or claim asserted by or against the company; or (b) eliminating fractional shares; or (c) fulfilling the terms of a non-assignable agreement under which the company has an option or is obliged to purchase shares owned by an officer or an
employee of the company; or (d) satisfying the claim of a dissenting shareholder; or (e) complying with a court orde
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