Procedure for buyback of shares in india

Procedure for buyback of shares in india

Author: puchkofff Date of post: 10.06.2017

Buy-Back of Securities Unlisted Public Co.

Procedure for Buy-Back of Securities under companies act | eqogypacuc.web.fc2.com

Buy Back of Securities is a very important tool for Companies who wants to reduce their Share Capital. First of all, here are few preliminary notes of Buy Back:. Relevant Sections modified according to rules: No buy-back of any kind of shares or other specified securities shall be made out of the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities.

Debt is aggregate of secured and unsecured debts owed by the after buy-back. The notice of the meeting at which the special resolution is proposed to be passed shall be accompanied by an explanatory statement stating—. As per the rules, following more details is to be included in the Explanatory Statement:.

Every buy-back shall be completed within a period of one year from the date of passing of the special resolution, or as the case may be, the resolution passed by the Board. Before making such buy-back, file with the Registrar, a declaration of solvency signed by at least two directors of the company, one of whom shall be the managing director, if any, Form No. Company shall extinguish and physically destroy the shares or securities so bought back within seven days of the last date of completion of buy-back.

Where a company completes a buy-back of its shares or other specified securities, it shall not make a further issue of the same kind of shares or other securities including allotment of new shares or other specified securities within a period of six months except by way of:.

Company shall maintain a register in Form No.

Buy-Back of Securities / Shares under Companies Act,

The register of shares or securities bought-back shall be maintained at the registered office of the company and shall be kept in the custody of the secretary of the company or any other person authorized by the board in this behalf. The entries in the register shall be authenticated by the secretary of the company or by any other person authorized by the Board for the purpose.

A company shall, after the completion of the buy-back under this section, file with the Registrar a return in Form No. There shall be annexed to the return, a certificate in Form No. If a company makes any default in complying with the provisions of this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees, or with both.

Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet.

The capital redemption reserve account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.

No company shall directly or indirectly purchase its own shares or other specified securities—. Provided that the buy-back is not prohibited, if the default is remedied and a period of three years has lapsed after such default ceased to subsist.

No company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provisions of:. Declaration and Payment of Dividend. Failure to give True and Fair Statement. The difference if any will be credited to Profit on Sale of Investment Account or debited to Loss on Sale of Investment Account which in turn will be transferred to Profit and Loss Account.

This was a brief summary of Buy Back. For any query, please mail me at:. By back without reduction of capital is possible for private companies?

Regarding buy back offer of CAPRICON REALTY LTD. The book value per Eq. Not only that company is in realty sector to develop skyscaper ressidance premium towers in posh area of Mahalakshmi Southern part of Mumbai.

This premium residential development in central Mumbai was planned to involve development of a total area of around 1. The aggregate area for development is now estimated to increase to approximately 1. These changes to the project designs and plans mean that project completion is now expected to be extended by a quarter.

However these changes are also expected to considerably enhance the returns Ishaan will receive from its investment in the Vivarea project. Pre-launch sales of the apartments began at the end October and has evidenced strong demand. Sub-structure work is now in progress in the three residential towers. I have physical share wockpharma life science now merger in Carol Info. Carol Info is not received due to address change. After I communication with Registrar they send Carol Info Share.

In this process Carol Info Delisted and They Offer to Investor Buyback Rs. But I did not found bayback offer due to address change. What is the accounting treatment of taxes paid on buy back of shares.

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Daily Latest Updates In Your Mailbox. Auditors Report stating maximum amount permissible for buy back Board of Directors Affidavit regarding Solvency of company for one year.

Then holding Board Meeting for considering proposal of buy back, getting resolution passed and determine price for such buy back. Issue of notice with Explanatory Statement along with disclosures mentioned below to all members.

Obtaining Declaration of Solvency verified by an affidavit in e-form SH9 Filing draft letter of Offer with the ROC along with declaration of Solvency and e-form SH8 Filing of e-form for registration of such resolution with MCA Verification of offer to be completed. Offer for buy back shall remain open to the members for a period not less than 15 days and not exceeding 30 days from the date of dispatch of letter of offer.

The shares or other securities lodged shall be deemed to be accepted unless a communication of rejection is made within twenty one days from the date of closure of the offer.

Making payment in cash to those shareholders whose offer has been accepted or return the share certificates to the shareholders forthwith. Extinguish and physically destroy the share certificates of shares bought back. File requisite return in e-form SH 11 with MCA21 and a declaration signed by 2 directors, one of whom shall be Managing Director, if any in e-form SH NOSince here payment is made as per Section 77A of Companies Act and not from accumulated profits.

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