Shareholder wants to exit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2015 If 2 shareholders holding 12% shares want to exit the company and want that the company pay them their share in money is it possible for the company to take back the shares and pay them

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
Follow

17 December 2015 Refer the following link-

http://corporatelawreporter.com/2014/06/29/buy-equity-shares-companies-act-2013/

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2015 The link provided is for buy back which says pro- rata buy back of shares. My question is only 2 out of existing 7 shareholders want to exit the company. These shareholders hold 12% shares. Can the company pay them their share and buy back the shares or is there any other method by which the company can pay them. As per law buy back is pro - rata- these 2 shareholders want to give up their entire shareholding(100%) and take money in return whereas other sareholders want to retain their share in the company

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
Follow

18 December 2015 Sorry to say. There's no other provision for buy back of shares.
Else, you may transfer the shares to other shareholders and collect money from them and pay the exiting shareholders.