Section 515. Reacquired shares

(a)  Shares that have been issued and have been purchased, redeemed or
  otherwise reacquired by a corporation shall be  cancelled  if  they  are
  reacquired out of stated capital, or if they are converted shares, or if
  the  certificate of incorporation requires that such shares be cancelled
  upon reacquisition.
    (b) Any shares reacquired by the corporation and not  required  to  be
  cancelled  may be either retained as treasury shares or cancelled by the
  board at the time of reacquisition or at any time thereafter.
    (c) Neither the retention of reacquired shares as treasury shares, nor
  their subsequent distribution  to  shareholders  or  disposition  for  a
  consideration  shall change the stated capital. When treasury shares are
  disposed of for a consideration, the surplus shall be increased  by  the
  full amount of the consideration received.
    (d)  Shares cancelled under this section are restored to the status of
  authorized  but  unissued  shares.  However,  if  the   certificate   of
  incorporation  prohibits the reissue of any shares required or permitted
  to be  cancelled  under  this  section,  the  board  by  certificate  of
  amendment  under  section 805 (Certificate of amendment; contents) shall
  reduce the number of authorized shares accordingly.