Buy Back of shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2009 whether private limited companies have the option to buy back the shares if answer is yes in which section of companies Act governs the same...?

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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11 December 2009 Yes,

The provisions regulating buy back of shares are contained in Section 77A, 77AA and 77B of the Companies Act,1956. These were inserted by the Companies (Amendment) Act,1999. The Securities and Exchange Board of India (SEBI) framed the SEBI(Buy Back of Securities) Regulations,1999 and the Department of Company Affairs framed the Private Limited Company and Unlisted Public company (Buy Back of Securities) rules,1999 pursuant to Section 77A(2)(f) and (g) respectively.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2009 Thanks for your quick reply but i want to now how a private limited company buy back its securites can you please explain me with one practicle example....?
Thanks in advance

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CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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11 December 2009 well i have one article relevant to this so follow the below mention link:

http://www.legalserviceindia.com/articles/shares.htm

hopefully you will get complete information regaing buy back.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2009 Thanks alot...... i got the answer.