Tag Archives | Buy-back

Provisions for Prohibition of Buy-Back of Shares | India | Accounting

In this article we will discuss about the provisions for prohibition of buy-back of shares. According to Section 77B of the Companies Act, no company shall, directly or indirectly, purchase its own shares or other specified securities: (а) Through any subsidiary company including its own subsidiary companies; or (b) Through any investment company or group […]

Buy-Back of Securities: Meaning and Advantages | India | Accounting

In this article we will discuss about:- 1. Introduction to Buy-Back of Securities 2. Meaning of Buy-Back of Securities 3. Sources 4. Advantages. Introduction to Buy-Back of Securities: By virtue of section 77(1) of the Companies Act, 1956, a company limited by shares could not buy its own shares as the same would amount to […]

Important Conditions for Buy-Back of Shares | India | Accounting

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 […]

Buy-Back of Shares: 4 Modes | India | Accounting

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 […]

Buy-back of Shares (With Illustration) | Accounting

The below mentioned article provides a study note on the Buy-back of Shares:- 1. Conditions for Buy-back of Shares 2. Restrictions on Buy-back of Shares 3. Contents of Notice of Meeting 4. Time-limit 5. Sources 6. Picking Shares 7. Declaration of Solvency 8. Method of Fixation of Price 9. Deposit in an Escrow Account 10. […]

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