Can anyone please tell me what is meant by Cancellation of shares?? and how does it affect to the share capital of the company??
Ashish Ojha
(Chartered Accountant)
(469 Points)
Replied 08 November 2009
when a company buys back its some shares & cancells it i.e. makes it ineffective for future. it is called cancellation.. Promoter group do it to increase their relative shareholding.. it is just opposite of issuing new shares which dilute existing shareholding..
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