Re - issue of buy back of shares

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Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2012 Dear Expert,

What is the procedure for reissue of Shares which has been Bought Back??

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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01 February 2012 You can issue same kind of shares which has been bought back anytime after 6 months from completion of buy-back.

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2012 How??

Do we require to file E-Form 2 ?

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CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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01 February 2012 Yes. There is need to file form 2. Because at the time of buy-back, all shares were extinguished. Hence on issue, it will be called issue of new share. It is not similar to forfeiture.

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2012 Dear Expert,

If i do so then Paid up capital of company will become duplicated.

For Ex.

Company Buy Backs equity Shares of Rs. 10 Lacs out of 2 Crores paid Up Capital but ROC is still showing in its record Paid Up Capital Rs. 2 Crores instead of Rs. 1.9 Crores. And If i Reissue the Shares it ROC will show Paid Up Capital Rs. 2.1 Crore.

But actually i have issued paid up capital of Rs. 2 Crore only..

I am little confused...

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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02 February 2012 Whenever you make any buy back, you have to file a return of buy back with RoC. Hence whenever you will file the return, your capital will be reduced, and hence whenever you will make issue again, there will not be any duplication.