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Buyback of shares

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CHAITRI SUDHAKARBHAI KHAROD

ARTICLE

752 Points Posted on 21 July 2020

what is the step by step procedure from passing of special resolution for buyback to completion of buyback??

Replies (3)

Quick Summary

This discussion outlines the process for a company share buyback, detailing the steps required after a special resolution is passed. It clarifies that while smaller buybacks (under 10% of paid-up capital and free reserves) can be approved by the board, larger buybacks (up to 25%) necessitate shareholder approval via a special resolution. The focus is on the equity share capital.

Girish Agarwal

35 Points Posted on 27 July 2020

Buyback can take place either by board resolution if paid up share capital + free reserves is below 10% but if the company wants to buyback exceeding the above limits and upto 25% of paid up share capital+ free reserves then the company has to compulsorily take shareholders approval through special resolution.