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Company can buy back share any time
Accountancy
Or some time
Answers (2)
According to Section 68 of the Companies Act 2013, a company can buy back its own shares if it has been authorized to do so by its articles of association and by a special resolution passed by its shareholders. The company can buy back its shares either from the existing shareholders or from the open market. Section 69 of the Companies Act 2013 lays down the rules and procedures that must be followed by the company when buying back its own shares. These include: The buyback can be made only out of the company's free reserves or securities premium account. The buyback must be made through a tender offer to all shareholders, and the offer must remain open for at least 15 days. The buyback price must be disclosed in the tender offer, and it cannot exceed the higher of the following: (a) the price paid by the company for its shares in the previous six months, or (b) the average of the weekly high and low of the closing prices of the shares on the stock exchange during the two weeks preceding the date of the tender offer. The company cannot make any further issue of shares for a period of six months after the completion of the buyback. The company must file a return of buyback with the Registrar of Companies within 30 days of the completion of the buyback.
