Purchase of own shares by a company is possible but for legal restrictions.
Restriction on purchase by company or giving loan for purchase of its shares (Section 67):
A company limited by shares or a company limited by guarantee and having share capital shall have no power to by its own shares unless the consequent reduction of share capital is effected under the provision of this Act.
Posted in Chapter IV - CA2013, Companies Act 2013, Governance and Responsibility
Tagged buy – back, Buy – back of securities, buy – back of shares, Capital Redemption Reserve Account, Companies Act 2013, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Debentures, employees’ stock option, India, Legal Reforms, Ministry of corporate affairs, Other Securities, Prohibition for buy –back, purchase of own securities, Reduction of share capital, Reforms, Share Capital, Shares, Shares and Securities
Share capital of a company is all about financing for its operations. Company issues its share to raise capital. On allotted shares, company may receive all money against premium and face value of share in one go or in instalment. In present post, we will discuss; call on shares, unpaid share capital, dividend, share premium, shares at discount, sweet equity and preference shares.
Posted in Chapter IV - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility
Tagged Bonus Issue, Bonus Shares, call on shares, Capital Redemption Reserve Account, Companies Bill 2012, Debentures, Discount in shares, ESOPS, India, issue of preference shares, Other Securities, Preference Shares, Preferential Allotment, Private Placement, Public Offer, redemption of preference shares, right issue, SEBI, Securities, Securities Premium Account, Share premiums, Shares and Securities, Sweat Equity, sweat equity shares, Tribunal, unpaid share capital
Writer of this blog, Aishwarya Mohan Gahrana is Practicing Company Secretary and Insolvency Professional working with M/s Aishwarya M Gahrana & Associates, a New Delhi based peer reviewed firm of company secretaries having pan India presence through friends and associates. This blog is a knowledge sharing initiative. Views expressed here is of writer; not of the organization(s) he is working with.
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