24 March 2011
Dear Subash Ji do you want to say that the company has been taken over. In that case the share is company held by earlier directors will be acquired by the new directors. No effect on company. In pvt ltd company no buyback is applicable. Only when the ownership changes the share will be transferred for consideration. Say In a pvt ltd company...X & Y r directors now the company has changed hands and A & B are new directors. In this case the new directors A & B will purchase the shares from X & Y for consideration and any gain will be treated as Capital Gain.
CAclubindia
