Sec. 33-684. Corporation's acquisition of its own shares. - Connecticut Statutes

      Sec. 33-684. Corporation's acquisition of its own shares. (a) A corporation may acquire its own shares and shares so acquired constitute authorized but unissued shares.

      (b) If the certificate of incorporation prohibits the reissue of the acquired shares, the number of authorized shares is reduced by the number of shares acquired.

      (P.A. 94-186, S. 54, 215; P.A. 96-271, S. 44, 254; P.A. 03-18, S. 4.)

      History: P.A. 94-186 effective January 1, 1997; P.A. 96-271 amended Subsec. (b) to replace "articles" of incorporation with "certificate" of incorporation and amended Subsec. (c) to replace "articles" of amendment with "a certificate" of amendment, effective January 1, 1997; P.A. 03-18 amended Subsec. (b) to make a technical change and delete provision re reduction effective upon amendment of the certificate of incorporation and deleted former Subsec. (c) re adoption, filing and contents of certificate of amendment, effective July 1, 2003.

      Annotations to former section 33-63:

      Contract with subscriber to stock to take stock back at price paid if corporation is not successful held ultra vires. 101 C. 539. When such a contract is permissible. 103 C. 389. Purchase by corporation of own stock is ultra vires if statutory provisions not observed. 149 C. 322. Required even though corporation solvent at the time. Id., 326.

      Annotations to former section 33-65:

      Re retirement of preferred stock: Contract to buy back stock if not successful held ultra vires. 101 C. 539; 103 C. 389. Provisions of section must be complied with; recovery allowed where corporation, through failure to comply with requirements, could not carry out contract to deliver stock of no par value. 106 C. 54.

      Annotations to former section 33-358:

      Nothing in this section prohibits corporation from purchasing own stock on credit or requires it to make purchase for cash or property. 151 C. 353. Cited. 168 C. 201.