Cap. 168 Art. 96Company may not hold its own shares. for purchase of or subscription for its own, or its holding company’s shares.

(1) It shall not be lawful for a company to hold any of its own shares.

(2) Where under any provision contained in the memorandum or articles of a company any share is forfeited to the company, any such share shall, until disposed of or until the forfeiture is cancelled, carry no voting rights.

(b) to give, whether directly or indirectly, and whether by means of a loan, guarantee, the provision of security or otherwise, any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in the company, or, where the company is a subsidiary company, in its holding company.

(2) For the purposes of this Ordinance a company shall be deemed to be a subsidiary of another (in this Ordinance referred to as the "holding company") only if -

(a) that other either -

(i) holds more than half in nominal value of its issued share capital, excluding any part thereof which, neither as respects dividends nor as respects capital, carries any right to participate beyond a specified amount in a distribution; or

(ii) is entitled to more than half its voting power; or

(b) the first mentioned company is a subsidiary of any company which is that other’s subsidiary.