what is the procedure for Buy Back of Bonus Shares in unlisted Private Limited Company?
What is time of holding period for buy back of Bonus Shares in unlisted Private Limited Company?
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Buyback of Bonus Shares
Replies (2)
Quick Summary
The buy-back is authorised by the Articles of association of the Company;.
A special resolution has been passed in the general meeting of the company authorising the buy-back. In the case of a listed company, this approval is required by means of a postal ballot. Also, the shares for buy back should be free from lock in period/non transferability.The buy back can be made by a Board resolution If the quantity of buyback is or less than ten percent of the paid up capital and free reserves;
A special resolution has been passed in the general meeting of the company authorising the buy-back. In the case of a listed company, this approval is required by means of a postal ballot. Also, the shares for buy back should be free from lock in period/non transferability.The buy back can be made by a Board resolution If the quantity of buyback is or less than ten percent of the paid up capital and free reserves;
Would like to add further on buy back quantum
By
Board Resolution - 10% Of Paid up equity + Free Reserves
Shareholder's Resolution -25% Of Paid Up Capital (Eq+Pref)+ Free Reserves
Max Quantum of Equity Buy Back -25% of Paid Up Equity
No New Issue of Same class until expiry of 6 months of previous buy back
By
Board Resolution - 10% Of Paid up equity + Free Reserves
Shareholder's Resolution -25% Of Paid Up Capital (Eq+Pref)+ Free Reserves
Max Quantum of Equity Buy Back -25% of Paid Up Equity
No New Issue of Same class until expiry of 6 months of previous buy back
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