EQUITY SHARES

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pankaj kumar gupta

pankaj kumar gupta (Querist)
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29 January 2010 A COMPANY CAN PURCHASE ITS OWN EQUITY SHARES ? REASONS

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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29 January 2010 Section 77A, 77AA and 77B of the Companies Act,1956 contain provisions of Buy Back of shares by a company.

A company may buy back the shares issued by it on account of one or more of the following reasons

i. To increase promoters holding
ii. Increase earning per share
iii. Rationalise the capital structure by writing off capital not represented by available assets.
iv. Support share value
v. To thwart takeover bid
vi. To pay surplus cash not required by business
As a strategy to maintain the share price.

CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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29 January 2010 agree through buy back of shares.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 January 2010 agree with Mr.Ramesh Kumar

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