Buyback vs sec 66

i tell you the basic things regarding  the buyback of share and reduction of share

the corporations act 2001 allow a company to reduce its share capital in two ways 

share capital reduction

and buy back of share

CAPITAL REDUCTION

when a money paid to a company in respect of a members share is returned to the member or when certain shares are cancelled for nil consideration

there are certain rules also as per sec 256B WHAT THE REDUCTION SHOULD BE TO REDUCE SHARE

there are two types of capital reduction

i equal ; when reduction relates to ordinary share only and apply to each holder of ordinary shares in proportion to the number of ordinary shares held and as the name suggest the term of the reduction are the same for each member it is made by ordinary resolution

ii selective : when the above condition nt full filled or aapplied then selective occurs it make by voting  by special resolution or resolution agreed byb all the ordinary share holder

the must notify ASIC of the reduction  in share capital before conducting any meeting

SHARE BUY BACK

When a company acquires share in itself from its existing shareholder and then cancelled those shares 

to know more read sec 275A

1  equal share buy back  here  ordinary sh holder offers a reasonable opportunity  offer buy back at same % of their ordinary share

2selective buy back here only selective members of the company gets the offer

3 employee share scheme buy back this happen when a company buy back share that is held by or  for its employees  or salaried director

4 on market buy back here the company buy back by trading on stock exchange

5 minimum holding buy back  when the company buy back  unmarketable parcels of shares from share holders

it too notify to ASIC