urgent technical query

This query is : Resolved

Guest

Guest (Querist)

26 August 2009 A private non listed company of my relative , had sold its shares of rs 300000 last year to increase its capital .
now it wants to purchase it back from the same party. please tell me and advise on the best and safest way to do that .... please suggest the right way which companies practice in inida...

regards
shobhit

M Prabhakar Menon

M Prabhakar Menon (Expert)
Follow

26 August 2009 First of all to increse capital u dont sell shares u allot them to persons who have applied for them.
Secondly the company's Articles of Asociation should allow the company to buy back its own shares, if no such clause is there u will have to get it inserted in the AoA.
The shares once issued to a shareholder is like any comodity in the market that can be bought and sold for its price, negotiate with the person whose shares u intend to purchase and submit the Share Certificates along with Share Transfer Form to the Comnpany for recording the transfer This way the paid up capital will not get reduced If u wish to reduce the capital the procedure is different

Message likes : 1 times

CS SIDDHARTHA BANIK

CS SIDDHARTHA BANIK (Expert)
Follow

26 August 2009 For buy back of shares of pvt. Ltd. Co. please go through the â€˜Pvt. Limited Company and Unlisted Public Limited Company (Buy Back of Securities) Rules, 1999 and the procedure accordingly.

Thanks,
CS Siddhartha Banik

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

cgagroshg cgagroshg

venkanna setty

Jayaram Bramhajosyula

NITHIN GEORGE

DHRUV PATEL

Subscribe Now

urgent technical query

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

CA Final

Accountant

GST CONSULTANCY

GST CONSULTANT