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An offshore company may provide financial assistance,[1] directly or indirectly for the purpose of purchasing its own shares or the shares of any of its subsidiaries or its holding company, if:

a) the lending of money is part of the ordinary business of the offshore company, or;

b) the financial assistance is given to its employees or employees of its subsidiaries or holding company, or;

c) there is no reasonable ground to believe that the company is not or would not have been insolvent after such assistance, or;

d) there is no reasonable ground to believe that the realisable value of the company’s assets will be less than its aggregate liabilities after giving the assistance

An offshore company may also purchase its own shares for the purpose of:

a) eliminating fractional shares;

b) paying dissenting shareholders;

c) retiring redeemable preference shares.

The above purchases or assistance, whether direct or indirect, shall be made only using the unreserved and unrestricted surplus available.