What is required for a market purchase of shares to take place?

For a market purchase of shares to occur, a resolution of the company specifying the limits and terms of the buyback is essential. This resolution typically outlines the parameters under which the company can repurchase its shares, including the maximum number of shares to be bought back, the price range for those shares, and the time frame during which the buyback will take place.

This requirement serves to ensure that the buyback is conducted in a manner that is fair and transparent to existing shareholders, and it also protects the company’s financial stability by setting clear boundaries on the buyback activity. The resolution effectively authorizes the company's management to execute the buyback within defined constraints, thus aligning with corporate governance practices.

Other options such as a written agreement from shareholders or a financial audit may not be necessary or relevant to the execution of a share buyback. A public announcement, while often considered good practice for informing the market and shareholders, is not a legal requirement for the actual purchase to take place. Therefore, the resolution from the company serves as the fundamental requirement for conducting a market purchase of shares.