(1) Where the company has purchased treasury shares of stock in violation of section 71 (1) or (2), these shares of stock must be disposed of within one year of having been purchased.
(2) Where the shares of stock, which the company has purchased in accordance with section 71 (1) in a permissible manner and which continue to be in its possession, amount to more than 10 per cent of the capital stock, that portion of the shares of stock that is in excess of said ratio must be disposed of within three years of having been purchased.
(3) Where treasury shares of stock have not been disposed of within the time limits stipulated in subsections (1) and (2), they are to be redeemed pursuant to section 237.