29 January 2010
Can the buy back of shares by a private limited company can be made twice within 365 days of previous buy back of same shares? Please tell me the reference also, if it is written sumwhere......... its really urgent........
according to Section 77A subsection(2) proviso: no offer of buy-back shall be made within a period of three hundred and sixty-five days recokned from the date of the preceding offer of buy-back, if any.
Explanation.-For the purposes of this clause, the expression "offer of buy-back" means the offer of such buy-back made in pursuance of the resolution of the Board of Directors.
07 February 2010
Sorry Ms Vandana..but my interpretation says some diffent thing... My interpretation says that there is no restriction on making buy back twice a year, which can be interpreted from the wording of provisions in section 77A(2)(c ) laid below. My interpretation says that buy back can be made twice or thrice in a financial year however total buy back should not increase 25% of Paid up equity and free reserves in any financial year.
However, the process of buy back shall be completed within 12 months from the date of special resolution in which the approval of buy back is passed.
Relevant Provisions Section 77A (2) says Clause (c) the buy-back is of less than twenty-five per cent of the total paid-up capital and free reserves of the company : Provided that the buy-back of equity shares in any financial year shall not exceed twenty-five percent of its total paid-up equity capital in that financial year
(4) Every buy-back shall be completed within twelve months from the date of passing the special resolution under clause (b) of sub-section (2).
18 July 2024
Yes, a private limited company can buy back its shares twice within a period of 365 days, subject to certain conditions and approvals. Here are the key points regarding buyback of shares by a private limited company within a 365-day period:
1. **Limitations and Conditions**: As per Section 68(2) of the Companies Act, 2013 and Rule 17 of the Companies (Share Capital and Debentures) Rules, 2014, a private limited company can buy back its shares once in a financial year. However, there is no specific restriction prohibiting a private limited company from conducting two buybacks within a 365-day period.
2. **Compliance with Requirements**: Each buyback must comply with the provisions of Section 68 and other applicable provisions of the Companies Act, 2013, including obtaining approval by way of a special resolution passed in a general meeting.
3. **Interval Between Buybacks**: While there is no prohibition on conducting two buybacks within a 365-day period, it is important to note that each buyback must comply with the interval requirements specified under Rule 17 of the Companies (Share Capital and Debentures) Rules, 2014. According to Rule 17(4), the interval between two buybacks shall not be less than 365 days.
### Reference: - **Section 68(2) of the Companies Act, 2013**: This section provides the general framework for buyback of shares by companies. - **Rule 17 of the Companies (Share Capital and Debentures) Rules, 2014**: This rule prescribes the detailed procedural requirements for buyback of shares, including the interval between buybacks.
### Conclusion: In summary, while a private limited company can conduct two buybacks within a 365-day period, it must comply with the specific requirements and approvals under the Companies Act, 2013 and the Companies (Share Capital and Debentures) Rules, 2014. Ensure to follow the procedural steps, obtain necessary approvals, and maintain compliance with the interval requirement between buybacks.
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