Company buy-back powers: statutory conditions and procedural safeguards govern purchase of its own securities and compliance. A company may effect a buy-back of its own fully paid securities out of free reserves, securities premium or fresh issue proceeds subject to its articles and either a special resolution (or board authorisation for limited buy backs), statutory ceilings on capital and reserves, a prescribed debt ratio after buy back, market regulator rules for listed securities, prescribed solvency declaration and filing obligations, extinguishment and destruction of bought securities, maintenance of a buy back register and filing of returns; defaults attract penalties.