Buy back of shares

This query is : Resolved

kavitha (Querist)
Follow

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

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

09 April 2012 What is the intention of the project? whether the directors want their money back or wat?? Pls clarify.

kavitha

kavitha (Querist)
Follow

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

kavitha

kavitha (Querist)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now