Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Plz help

CA Saxena (CA) (161 Points)

18 January 2012

can a closely held co make a tender offer for buy back of shares to its members..??

n what if a single member only wishes to apply for buy back of his entire holding in the company??

thanx

Reply
Follow
Share

2 Replies

CS Rajveer Rai, Gurgaon (CS) (646 Points)
Replied 18 January 2012

A Private or unlisted public company may buy-back its shares by either of the following

methods :-

(a) from the existing shareholders on a proportionate basis through private offers;

(b) by purchasing the securities issued to employees of the company pursuant to a

scheme of stock option or sweat equity.

accordingly it is mandatory that buyback should be made on proportionate basis from all existing shareholder

Upgrade to CAclubindia Pro. Subscribe Now!

CA Saxena (CA) (161 Points)
Replied 18 January 2012

Originally posted by : CS Rajveer Rai, Gurgaon

A Private or unlisted public company may buy-back its shares by either of the following

methods :-

(a) from the existing shareholders on a proportionate basis through private offers;

(b) by purchasing the securities issued to employees of the company pursuant to a

scheme of stock option or sweat equity.

accordingly it is mandatory that buyback should be made on proportionate basis from all existing shareholder