---
title: "Check the board steps before a corporation purchases its own shares"
url: "https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-approval-steps-before-financial-assistance-is-given/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A2-TM20261022-15-US"
practice_area: "Mergers & Acquisitions / Private Equity"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Check the board steps before a corporation purchases its own shares

> From the structure the lawyer marks, list whether the file contains a board resolution for a purchase or redemption of the corporation's own shares, and whether a capital analysis is attached.…

Canonical page: https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-approval-steps-before-financial-assistance-is-given/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Mergers & Acquisitions / Private Equity](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the structure the lawyer marks, list whether the file contains a board resolution for a purchase or redemption of the corporation's own shares, and whether a capital analysis is attached. Do not draft a stockholder special resolution or a filing with a corporate regulator as a condition of the purchase. |
| What the lawyer must review | For a Delaware corporation, the lawyer decides whether the board can act under § 141 and whether § 160(a)(1) is satisfied. Section 160 does not require stockholder approval before the purchase, and it does not require a filing lodged a set number of days before the assistance is given. If the lawyer relies on the exception for shares that will be retired and capital reduced, the lawyer reads §§ 243 and 244, which § 160(a)(1) names. Those two sections were not the text used to settle the resolution. |
| Written for | United States |
| Applies to | [Check the approval steps before financial assistance is given](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-approval-steps-before-financial-assistance-is-given.md) |

## Checking plan

- What the AI does: From the structure the lawyer marks, list whether the file contains a board resolution for a purchase or redemption of the corporation's own shares, and whether a capital analysis is attached. Do not draft a stockholder special resolution or a filing with a corporate regulator as a condition of the purchase.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not build a 14-day pre-lodgement timetable. Section 160 does not contain one.
- Section 174 imposes director liability for a wilful or negligent violation of § 160. The lawyer, not the list, decides whether the capital test is met.

## Sources

- [Delaware General Corporation Law, Subchapter V, including § 160](https://delcode.delaware.gov/title8/c001/sc05/index.html) (checked 2026-10-22)
- [Delaware General Corporation Law, Subchapter IV, including § 141](https://delcode.delaware.gov/title8/c001/sc04/index.html) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*