Value of Buy back of share issued at premium by a pvt co?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 November 2010
A private limited company has earlier issued its share of Face Value Rs10 at a premium of Rs 90/-.
In six months time it wants to buy back its share. at what price it should be bought back i.e. at premium or face value or it could be done at a lower or higher rate?
In six months time it wants to buy back its share. at what price it should be bought back i.e. at premium or face value or it could be done at a lower or higher rate?
10 November 2010
It should be bought back at book value per share.
Views of other experts also solicited.
Views of other experts also solicited.
10 November 2010
Should ideally be at book value or fair value of the share and not face value or issue price.
10 November 2010
Please refer to Private Limited Company and Unlisted Public LimitedCompany (Buy-Back of Securities) Rules, 1999.
The Explanatory Statement set out alongwith the Special Resolution has to provide for the basis of arriving at the buy back price.
Hence, it is very clear that whatever the price the company decides has to be justifiable.
The Explanatory Statement set out alongwith the Special Resolution has to provide for the basis of arriving at the buy back price.
Hence, it is very clear that whatever the price the company decides has to be justifiable.
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 November 2010
can u send me the link for Private Limited Company and Unlisted Public LimitedCompany (Buy-Back of Securities) Rules, 1999.
16 November 2010
visit this link
http://mca.gov.in/Ministry/actsbills/rules/PLCaUPLCBBoSR1999.pdf
http://mca.gov.in/Ministry/actsbills/rules/PLCaUPLCBBoSR1999.pdf
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Sale of property furniture sale
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
