Hi,
A minor share holder reject a buy -back offer?
Can company can pass resolution that it can buy-back from a particular share -holder. even if the share holder not willing to sell at that time.
Regards
Reddy
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Reject buy back offer
Replies (4)
Hi Krishan,
The company will have to make an offer of Buy back to the general shareholders and it cannot do so with one shareholder in perticular. If the share holder wants to exercise this option then he must do so at the time as provided by the resolution for buy back. The Buy back upto 10% can be resolved in the Board meeting and for a Buy Back upto 25% should be resolved in the general meeting.
Also, the Company cannot pass a resolution to the effect that it will offer the buy back only to one shareholder.
Hi Ajinkya,
Thanks for response. Did share holder has right to reject that buy-back offer.
Regards
Krishna
Yes shareholder have right to accept or reject the buyback offer.
Hi Krishnan,
Yes, the shareholder always has the right to reject the buy back offer. See technically, the buy-back is an 'OFFER' by its mere nature. Hence as per the the basic principles of The Contract Act, an offer needs to be accepted for it to be binding. If the shareholder does not want the buy back, he can very well reject the said offer.
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