Buy back of shares
This query is : Resolved
09 April 2012
hi,
our company is a public company limited by shares n unlisted. it is a manufacturer of aloe Vera products.company buys raw material(aloe vera Leaf) from directors who owns agricultural lands.they enter into MOU with company to supply raw material n in return company allots shares for the money.aloe vera leaf cost 10 (each leaf) n out of 10/- 8/- is adjusted towards share allotment,2/- will be paid in cash. our authorise capital is 25 crores n paid up capital is 20 crores.
As directors are cultivating other crops in the subjected lands they want to cancel MOU.(Reducing the area of cultivation of aloe vera). so i opted for buy back of shares kindly advise me
Thanks
our company is a public company limited by shares n unlisted. it is a manufacturer of aloe Vera products.company buys raw material(aloe vera Leaf) from directors who owns agricultural lands.they enter into MOU with company to supply raw material n in return company allots shares for the money.aloe vera leaf cost 10 (each leaf) n out of 10/- 8/- is adjusted towards share allotment,2/- will be paid in cash. our authorise capital is 25 crores n paid up capital is 20 crores.
As directors are cultivating other crops in the subjected lands they want to cancel MOU.(Reducing the area of cultivation of aloe vera). so i opted for buy back of shares kindly advise me
Thanks
09 April 2012
What is the intention of the project? whether the directors want their money back or wat?? Pls clarify.
10 April 2012
directors are family members so there is no problem. they does not need money as there is no money involved in issue of shares
10 April 2012
directors supply aloe leaf (Raw Material)each leaf 10/- and for that company allot shares there is no money involved. paid up capital increases every year as they supply upto fy 2014-15, as per MOU Agreement.
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