Section 56(1) prohibits transactions in shares by the company as follows:

• Alter the number of its shares.
• Alter the amount remaining payable on those shares.
• Release a shareholder or a former shareholder from a liability on the shares.
• Provide financial assistance, directly or indirectly for the subscription or purchase of its shares or the shares of its holding company.
• Acquire by way of purchase or otherwise any of its issued shares or any shares of its holding company.

(Any 2 points for 2 marks each)