Buyback of shares

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Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2010 A Pvt Ltd Company has issued equity shares to two shareholders- A & B, at a premium. Now, it wants to buy-back some shares from A at book value. can it be done and is valid in the eyes of law?

Aditya Maheshwari

Aditya Maheshwari (Expert)

26 April 2010 Preferable if done at fair market value than book value though even done at book value is valid.

CS Jithesh (ACS,)

CS Jithesh (ACS,) (Expert)

26 April 2010 According to me it is valid as long as no forceable majurea is there on A to sell the shares back to the company

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2010 What about the Securites Premium Amount received at the Time of original issue of shares. Will they be considered as a part of Capital of the Company.

Aditya Maheshwari

Aditya Maheshwari (Expert)

26 April 2010 read section 77A for that.

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