The conditions precedent to buy-back, as laid down in Section 77A (2) of the Companies Act are:- (a) The company's article should authorise the buy-back. In case the articles are silent on this point, the same has to be amended to include a provision to that effect; (b) No company shall purchase its own shares or other specified securities unless [...]
In this article we will discuss about the accounting entries for buy-back of shares. Buy-back of shares is just the opposite of issue of shares. Just as shares may be issued at par, at a premium or a discount, even buy-back may be at par, at a premium or at a discount. The basis of accounting for buy-back is Section [...]
In this article we will discuss about the four important modes of buy-back of shares. 1. From the existing security holders on a proportionate basis through the tender offer; or 2. From the open market through: (i) Book-building process, (ii) Stock exchange; 3. From odd lots, that is to say, where the lot of securities of a public company whose [...]