(215 ILCS 5/28) (from Ch. 73, par. 640)
(Section scheduled to be repealed on January 1, 2027)
Sec. 28.
Dealing in
shares of company.
(1) A company subject to the provisions of this Article shall have
the power to purchase, take, receive, or otherwise acquire, hold, own,
pledge, transfer, or otherwise dispose of its own shares, provided that it
shall not purchase, either directly or indirectly, its own shares when its
net assets are less than the sum of its paid-up capital, and its required
surplus, any surplus arising from unrealized appreciation in value or
revaluation of its assets and any surplus arising from surrender to the
corporation of any of its shares, or when by so doing its net assets would
be reduced below the minimum capital and surplus requirements of Section 13
hereof, and as set forth in the articles of incorporation.
Notwithstanding the foregoing limitations, a company may purchase its own
shares for any of the following purposes:
(a) eliminating fractional shares;
(b) collecting or compromising claims of the company |
| or securing any indebtedness to the company previously incurred;
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(c) paying dissenting shareholders entitled to
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| payment for their shares in the event of a merger or consolidation;
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(d) effecting a plan for the mutualization of the
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(e) furthering a general savings and investment plan
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| for employees of the company.
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(2) No shares which are or have been reacquired, purchased, pledged or
held pursuant to paragraph (1) of this Section shall be considered an
admitted asset as defined in this Code, or considered in determining the
solvency of such company.
(Source: Laws 1959, p. 631 .)
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