Buy Back of Securities is a very important tool for Companies who wants to reduce their Share Capital.

Share buy-backs: Get the details right | AccountingWEB

First of all, here are few preliminary no tes of Buy Back: Governing Sections of Companies Act: I ncludes ESOP or other security as notified by Central Government. To improve return on capital, return on net worth and to enhance the long-term shareholders value;. To support share price during periods of sluggish market condition;. EPS gets improved as can be been with the below mentioned example: Relevant Sections modified according to rules: No buy-back of any kind of shares or other specified securities shall be made out of the proceeds of an earlier issue of the same kind of shares or same kind of other specified securities.

No offer of buy-back shall be made within a period of one year from the date of the closure of the preceding offer of buy-back, if any. The explanatory statement to be annexed to the notice of the general meeting pursuant to section shall contain the following disclosures, namely: Every buy-back shall be completed within a period of one year from the date of passing of the special resolution , or as the case may be, the resolution passed by the Board.

Before making such buy-back, file with the Registrar, a declaration of solvency signed by at least two directors of the company, one of whom shall be the managing director , if any, Form No.

No declaration of solvency shall be filed with the Securities and Exchange Board by a company whose shares are not listed on any recognised stock exchange.

Company shall extinguish and physically destroy the shares or securities so bought back within seven days of the last date of completion of buy-back. Where a company completes a buy-back of its shares or other specified securities, it shall not make a further issue of the same kind of shares or other securities including allotment of new shares or other specified securities within a period of six months except by way of: Company shall maintain a register in Form No.

The register of shares or securities bought-back shall be maintained at the registered office of the company and shall be kept in the custody of the secretary of the company or any other person authorized by the board in this behalf.

The entries in the register shall be authenticated by the secretary of the company or by any other person authorized by the Board for the purpose. The company, after the completion of the buy-back , shall file with the Registrar, and in case of a listed company with the Registrar and the Securities and Exchange Board of India, a return in the Form No.

There shall be annexed to the return filed with the Registrar in Form No. No return shall be filed with the Securities and Exchange Board by a company whose shares are not listed on any recognised stock exchange. If a company makes any default in complying with the provisions of this section, the company shall be punishable with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than one lakh rupees but which may extend to three lakh rupees, or with both.

Imprisonment for a term which may extend to 3 years or. Fine which shall not be less than Rs. Dispatch of LO to shareholders: The letter of offer shall be dispatched to the shareholders or security holders immediately after filing the same with the Registrar of Companies but not later than twenty days from its filing with the Registrar of Companies. Period of Buy- back: The offer for buy-back shall remain open for a period of not less than fifteen days and not exceeding thirty days from the date of dispatch of the letter of offer.

In case the number of shares or other specified securities offered by the shareholders or security holders is more than the total number of shares or securities to be bought back by the company, the acceptance per shareholder shall be on proportionate basis out of the total shares offered for being bought back. The company shall complete the verifications of the offers received within fifteen days from the date of closure of the offer and the shares or other securities lodged shall be deemed to be accepted unless a communication of rejection is made within twenty one days from the date of closure of the offer.

Open a Bank Account: The company shall immediately after the date of closure of the offer, open a separate bank account and deposit therein, such sum, as would make up the entire sum due and payable as consideration for the shares tendered for buy-back in terms of these rules.

Payment to security holders: Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet.

The capital redemption reserve account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares. No company shall directly or indirectly purchase its own shares or other specified securities—. Provided that the buy-back is not prohibited, if the default is remedied and a period of three years has lapsed after such default ceased to subsist. No company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provisions of: Offer for buy back shall remain open to the members for a period not less than 15 days and not exceeding 30 days from the date of dispatch of letter of offer.

The shares or other securities lodged shall be deemed to be accepted unless a communication of rejection is made within twenty one days from the date of closure of the offer. Immediately on Closure of offerOpen a Special Bank Account with Schedule Bank.

Within 7 days from completion of VerificationMaking payment in cash to those shareholders whose offer has been accepted or return the share certificates to the shareholders forthwith. Within 7 days from completion of AcceptanceExtinguish and physically destroy the share certificates of shares bought back.

After completion of buy backFile requisite return in e-form SH 11 with MCA21 and a declaration signed by 2 directors, one of whom shall be Managing Director, if any in e-form SH Buy back — Companies Act, Vs Companies Act, Every buy-back to be completed within 12 months from the date of passing the special resolution or the Board resolution as the case may be. It replaces the 12 months time limit with 1 year. No offer of buy-back shall be made within a period of days reckoned from the date of the preceding offer of buy-back.

It has changed the days period to 1 year period. The period of 1 year under the act has to be reckoned from the date of the closure of the preceding offer of buy-back.

Section 77A 5 c of the Act provides that the buy back may be from holders of odd lots of shares. Section 68 5 of the Act omits this provision. Your email address will not be published. WATCH TOP FACULTY DEMO VIDEOS OF CA Final.

GET ALL CA Final REF BOOKS AND SOLVED QUESTION PAPER FROM CAKART. More than 10 lac students have signed up with CAKART. CAKART's best faculty video classes can help you prepare like nothing else can!

Download CAKART TUTOR App to answer live doubts and earn. Join CAKART Ambassador Program to write for CAKART and earn. Sell your courses or books at CAKART. To successfully prepare for CS Executive you should use a combination of best faculty video lectures, best recommended scanners and books, and a lot of free notes, charts, pdf files available for free download from CAKART.

CS Executive Paper Tax Laws and Practice By CA Raj K Agrawal Watch Sample Video Lecture here 2. CS EXECUTIVE TAX LAWS AND PRACTICE By Arpit Gupta Watch Sample Video Lecture here 3. CS Executive module complete course Watch Sample Video Lecture here 4. CS Executive Module II Coaching Course Watch Sample Video Lecture here 5. CS Executive complete video course of all subjects Watch Sample Video Lecture here 6.

CS Executive Coaching Course Company Account and Audit Watch Sample Video Lecture here 7. CS Executive Cost Management Accounting By CA Raj K Agrawal Watch Sample Video Lecture here 8. CS Executive Paper Company Accounts and Auditing Practices by CA Raj K Agrawal Watch Sample Video Lecture here 9.

CS Executive Cost Management Accounting By Vijay Joshi Watch Sample Video Lecture here CS Executive Cost and Management Accounting Watch Sample Video Lecture here For more best faculty video lectures, visit here OR click here to place a call back request, our counsellor will call you back. These scanners are must for your exam preparation. A full list is as below. Click on each one of them to see more details. You can use Clear My Doubt App to clear any doubt at any time just by posting it on your phone and wait for a complete answer to pop out in your phone instantly or within a few hours.

This will ensure that you have someone who you can count on advice anytime. You should use CAKART App to keep yourself updated with all important information related to CS Executive. This is probably the best app our there to keep you informed on any and all updates that you will need for our exams.

For more best faculty video lectures, visit here OR click here to place a call back request, our counsellor will call you back. Download now for free by clicking on links below. Buy Back of Securities Unlisted Public Co. Sam March 9, at 2: Leave a Reply Cancel reply Your email address will not be published.

CA Final Articles Most popular CA Final Articles. NOTHING else will help you more than these top faculty video classes for your exam. More than 10 lakhs students use FREE Study Material from CAKART. Study Material Available for these exams -. Ok, Take me to Free Downloads Section. No thanks, I have everything I need. Sign Up with CAKART. We can not replace hard work, but we provide everything else that can help you achieve success. Sign in Forgot your password? Watch best faculty demo video classes.

Already have an account? Looks like this email address is already registered with us click here to sign in. Thank you for Signing up! Here is what you can do at CAKART Visit FREE DOWNLOADS Section Watch Sample Video lectures of top faculty Get all Reference Text Books for your exam Read excellent Articles for your exam Ask questions on QA Forum, Read Answers.

Two Android Apps you must have CLEAR MY DOUBT App - to ask doubts any time, link is here CAKART App - to keep yourself up to date on your exam. Earn from CAKART Download CAKART TUTOR App to answer live doubts and earn Join CAKART Ambassador Program to write for CAKART and earn Sell your courses or books at CAKART. Exciting Kids Activty in Your City. Click here to find all Kids Activity. S Rawat CA Final Combo Company Law and Allied Law for Nov Exam Solved Scanner CA Final Group 1 All 4 subject Solved Scanner CA Final Group II Paper-8 Indirect Tax Laws Solved Scanner CA Final Group I Paper-2 Strategic Financial Management Solved Scanner CA Final Group II Paper-6 Information Systems Control and Audit.

Click here to find all CA Final books. Study Material that you should use to prepare CS Executive To successfully prepare for CS Executive you should use a combination of best faculty video lectures, best recommended scanners and books, and a lot of free notes, charts, pdf files available for free download from CAKART.

VYAPARIK EVAM SAMANYA VIDHI 4. INCOME TAX MADE EASY 6. Company Accounts and Auditing Practices CS -Executive by N S Zad 7.

INCOME-TAX ACT POCKET Cost and Management Accounting CS-Executive by N S Zad. To search more books visit here. CS Executive Cost and Management Accounting Watch Sample Video Lecture here. CS Executive Full Group Solved Scanner Set 2. CS Executive Module 1 Solved Scanner Set 3. CS Executive Module 2 Solved Scanner Set 4. Solved Scanner CS Executive Programme Module-I New Syllabus Paper-1 Company Law 5.

Model Solved Scanner CS Executive Programme Module-I New Syllabus Paper-2 Cost and Management Accounting 6. Solved Scanner CS Executive Programme Module-I New Syllabus Paper-3 Economic and Commercial Laws 7. Model Solved Scanner CS Executive Programme Module-I New Syllabus Paper-4 Tax Laws and Practice 8. Solved Scanner CS Executive Programme Module-II New Syllabus Paper-5 Company Accounts and Auditing Practices 9.

Solved Scanner CS Executive Programme Module-II New Syllabus Paper-6 Capital Markets and Securities Laws Model Solved Scanner CS Executive Programme Module-II New Syllabus Paper-7 Industrial, Labour and General Laws.

To search more scanners visit here. Use following downloads, free notes, ebooks, pdfs for CS Executive Download now for free by clicking on links below.

Mtp 5 Ans For Ama 2. Ca Fina Lquestion Paper For Ama Nov 3. CA Final Group 2 AMA RTP May 4. AMA May RTP 5. Mtp 5 For AMA 6.

Advanced Management Accounting Rtp For Nov Exams 7. Ca Final Ama Paper-May 8. ICAI suggested Answers of CA final Nov 14 AMA Advanced Management Accounting Paper 9. Learning Curve Theory - CA Final - AMA Ca Final Ama Guideline Answer of may For more downloads on CS Executive, visit here.

How to clear all doubts related to CS Executive instantly? How to keep yourself fully up to date on each matter related to CS Executive? Use following Best faculty Video lectures for CS Executive. CS Executive Module II Coaching Course. CS Executive Company Law By CA Jaishree Soni. CS Executive Coaching Course Capital Market Securities laws By Rajeev Limaye. CS Executive Paper 5 Company Accounts and Auditing Practices by CA Raj K Agrawal.

CS Executive Paper 5A Company Accounts paper by CA Raj K Agrawal. CS Executive Paper 5B Auditing Practices By CA Raj K Agrawal.

CS Executive Paper 4 Tax Laws and Practice By CA Raj K Agrawal. CS Executive Company Law by Ms Padma Jain. CS Executive Cost Management Accounting By H L Gupta.

CS Executive Paper 4 Tax law and Practice by CA Ramakrishna Rao. Use following books for CS Executive Try and get these books for your preparation. Handbook on National Company Law Tribunal National Company Law Appellate Tribunal. Practical Implementation and Application Guide of Indian Accounting Standards Ind AS.

Goods and services Tax By Bharat s. Multiple Choice Questions on Tax Law Practice with Summarized Theory on Income Tax Service Tax VAT CS By Dr Girish Ahuja Dr Ravi Gupta. Company Accounts and Auditing Practices CS Executive by N S Zad. CS Executive Economics and Commercial Law By Tejpal Sheth. Cost and Management Accounting CS Executive by N S Zad. CS Executive Company law Charts for June IGP Publication Tax Scan ner for CS Executive MCQ By Vivek Gaba for June Exams.

Use following and more free notes, ebooks, pdfs. List Sections Of Companies Act With Memory Chart made easy Accounting Standard Notes By Ds Rawat Penalties Chart For Company Act Income Tax E Book Pdf Income Tax In Easy Way Service Tax Presentation Automatic Depreciation Chart as per Companies Act New Companies Act questions Solved With Charts CARO with MNEMONIC Summary Of Case Laws Of Direct Tax For more downloads on CS Executive, visit here.

VYAPARIK EVAM SAMANYA VIDHI. INCOME TAX MADE EASY. Company Accounts and Auditing Practices CS -Executive by N S Zad. Watch Sample Video Lecture here. CS Executive Paper Company Accounts and Auditing Practices by CA Raj K Agrawal. CS Executive Full Group Solved Scanner Set. CS Executive Module 1 Solved Scanner Set. CS Executive Module 2 Solved Scanner Set.

Solved Scanner CS Executive Programme Module-I New Syllabus Paper-1 Company Law. Model Solved Scanner CS Executive Programme Module-I New Syllabus Paper-2 Cost and Management Accounting.

Solved Scanner CS Executive Programme Module-I New Syllabus Paper-3 Economic and Commercial Laws.

Checklist For Buyback Of Shares- Unlisted Public Companies

Model Solved Scanner CS Executive Programme Module-I New Syllabus Paper-4 Tax Laws and Practice. Solved Scanner CS Executive Programme Module-II New Syllabus Paper-5 Company Accounts and Auditing Practices.

Solved Scanner CS Executive Programme Module-II New Syllabus Paper-6 Capital Markets and Securities Laws. Mtp 5 Ans For Ama. Ca Fina Lquestion Paper For Ama Nov CA Final Group 2 AMA RTP May AMA May RTP. Mtp 5 For AMA. Advanced Management Accounting Rtp For Nov Exams. Ca Final Ama Paper-May ICAI suggested Answers of CA final Nov 14 AMA Advanced Management Accounting Paper.

Learning Curve Theory - CA Final - AMA. List Sections Of Companies Act With Memory Chart made easy. Accounting Standard Notes By Ds Rawat. Penalties Chart For Company Act Income Tax E Book Pdf. Income Tax In Easy Way. Automatic Depreciation Chart as per Companies Act New Companies Act questions Solved With Charts.

CARO with MNEMONIC. Summary Of Case Laws Of Direct Tax.