Buy Back of Shares
This query is : Resolved
28 October 2010
Hi fellow colleagues
My Company is undergoing buy back process. Since this not a normal practice with companies so i wud want some guidance on this. Could you please tel me what shall be the after effect of buy back on my share capital? wil it be reduced?? I am confused with this.
My Company is undergoing buy back process. Since this not a normal practice with companies so i wud want some guidance on this. Could you please tel me what shall be the after effect of buy back on my share capital? wil it be reduced?? I am confused with this.
28 October 2010
Yes. Buy back has the effect of capital reduction.
28 October 2010
Hey I dont agree with Cs Vanita
Since for the reduction of share capital there r some special sections in Companies Act,1956 i.e. section 100-105\
Buy back of shares will not amount to reduction of share capital so the company need not have to follow the stringent provisiions of section 100
Since for the reduction of share capital there r some special sections in Companies Act,1956 i.e. section 100-105\
Buy back of shares will not amount to reduction of share capital so the company need not have to follow the stringent provisiions of section 100
29 October 2010
I didn't say that we have to follow the procedures of Section 100-105 for buy back but what i meant was the shares bought back has the effect of reduction of share capital.
02 November 2010
thnks guyz!!
03 November 2010
I agree with Vanita completely.....
Effect of buy back of shares will be reduction in the paid up share capital of the Company..... though you do not have to follow the procedure prescribed for reduction of share capital prescribed under section 100 of the Companies Act, 1956
Effect of buy back of shares will be reduction in the paid up share capital of the Company..... though you do not have to follow the procedure prescribed for reduction of share capital prescribed under section 100 of the Companies Act, 1956
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CAPITAL GAIN BASE ON NOTIFICATION
- Taxable or Tax exempt
- TDS Deducted AY-2013-14 Not Reflected in 26as
- ADVANCE PAYMENT OF ADVOCATE
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- DIN reactivation
- Eway bill not cancelled within 24 hous what can be due
- REGARDING ANNUAL RETURNS FILLINGS OF A COMPANY INCORPORATED ON 28.03.2025
- Condonation . E-Verification of last year return .
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
