21-07-2012, 11:15 AM
ACQUISITION OF SHARES THROUGH BUYBACK
ACQUISITION OF SHARES .pptx (Size: 1.15 MB / Downloads: 26)
CONDITIONS FOR BUYBACK Sec 77A(2
The buy-back is authorized by the articles.
The buy back is less than 25% of total paid up equity capital and free reserves.
All the shares or other specified securities for buy-back are fully paid-up.
BUY BACK Period Sec 77 A(4)
Every Buy Back should be completed within 12 Months from the date of passing of the special resolution
DESTRUCTION OF THE SECURITIES Sec 77A(7)
The company shall extinguish and physically destroy the securities so bought back within 7 days of completion of buy-back. Since holding Treasury stock is not allowed in India by Buyback of shares.