Title 2. BUY BACK OF EQUITY SHARES.pdf ✅

CHAPTER 2 BUY BACK OF EQUITY SHARES


▪ The notice of meeting at which special resolution is supposed to be passed must be accompanied by an explanatory statement stating: ▪ A full and complete disclosure of all material facts ▪ The necessity of the buy-back ▪ The class of security intended to be purchased under the buy-back ▪ The amount to be invested under the buy-back ▪ The time limit for completion of the buy-back. ▪ Buy back must be completed with in 12 Months from the date of special or board resolution. ▪ Company has to extinguish and physically destroy the securities so bought-back within seven days of the last date of completion of buy-back. ▪ After Buy back, company shall not make further issue of same kind of shares (Including Right Shares) within a period of next six months except: ▪ By way of bonus issue or ▪ In the discharge of subsisting obligations such as: ▪ Conversion of warrants ▪ Stock option scheme ▪ Sweat equity ▪ Conversion of preference shares or debentures into equity shares