EQUITY SHARES
This query is : Resolved
29 January 2010
A COMPANY CAN PURCHASE ITS OWN EQUITY SHARES ? REASONS
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.
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.
29 January 2010
agree through buy back of shares.
29 January 2010
agree with Mr.Ramesh Kumar
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