Buy Back of Shares
This query is : Resolved
28 October 2010
Hi fellow colleagues
My Company is undergoing buy back process. Since this not a normal practice with companies so i wud want some guidance on this. Could you please tel me what shall be the after effect of buy back on my share capital? wil it be reduced?? I am confused with this.
My Company is undergoing buy back process. Since this not a normal practice with companies so i wud want some guidance on this. Could you please tel me what shall be the after effect of buy back on my share capital? wil it be reduced?? I am confused with this.
28 October 2010
Yes. Buy back has the effect of capital reduction.
28 October 2010
Hey I dont agree with Cs Vanita
Since for the reduction of share capital there r some special sections in Companies Act,1956 i.e. section 100-105\
Buy back of shares will not amount to reduction of share capital so the company need not have to follow the stringent provisiions of section 100
Since for the reduction of share capital there r some special sections in Companies Act,1956 i.e. section 100-105\
Buy back of shares will not amount to reduction of share capital so the company need not have to follow the stringent provisiions of section 100
29 October 2010
I didn't say that we have to follow the procedures of Section 100-105 for buy back but what i meant was the shares bought back has the effect of reduction of share capital.
02 November 2010
thnks guyz!!
03 November 2010
I agree with Vanita completely.....
Effect of buy back of shares will be reduction in the paid up share capital of the Company..... though you do not have to follow the procedure prescribed for reduction of share capital prescribed under section 100 of the Companies Act, 1956
Effect of buy back of shares will be reduction in the paid up share capital of the Company..... though you do not have to follow the procedure prescribed for reduction of share capital prescribed under section 100 of the Companies Act, 1956
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