Section 670

A lien or other charge of a public company on its own shares (whether taken expressly or otherwise) is void, except as permitted by this section. In the case of any description of company, a charge is permitted if the shares are not fully paid up and the charge is for an amount payable in respect of the shares. In the case of a company whose ordinary business— a charge is permitted (whether the shares are fully paid or not) if it arises in connection with a transaction entered into by the company in the ordinary course of that business. includes the lending of money, or consists of the provision of credit or the bailment (in Scotland, hiring) of goods under a hire-purchase agreement, or both, In the case of a company that has been re-registered as a public company, a charge is permitted if it was in existence immediately before the application for re-registration.

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Source: legislation.gov.uk · retrieved 2026-09-04