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.
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.
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
CAclubindia
