Buy back of shares of a pvt ltd company

anushka shetty (B.Com) (28 Points)

08 February 2014  

Dear all,

    A private limited company has two directors with 51% and 49% of shares and the problem is that the 49% share holder wants to retire and want to sell the shares and 51% director was not financially sound to buy the same and there are no buyers available in outside market.

the 49% share holder deseprately want to sell the shares and is it possible for a company buy its own shares by providing land that company holds in its name equivalent to the share's value by transfering the name from company to individual (ie) 49% share holder so that he can sell the land and get money?

the 51% share holder aggrees for the same but to know what the law says and is this feasable and requesting you all to help in this by providing where to start.

also would like to know will the company suffers any taxation on this?


Anushka A shetty