Section 135, The Companies Act, 2009

(1) Subject to subsection (2) and its articles, a companymay not purchase or otherwise acquire shares issued by it. (2) A company may acquire its own shares for the purpose of– (a) settling or compromising a debt or claim asserted by or against the company; (b) eliminating fractional shares; (c) fulfilling the terms of a non-assignable agreement under which the company has an option or is obliged to purchase shares owned by an officer or an employee of the (d) satisfying the claim of a dissenting shareholder; or (e) complying with a court order. (3) A company may accept from any shareholder, a share in the company surrendered to it as a gift, but may not extinguish or reduce a liability in respect of an amount unpaid on such share, except in accordance with section 89.