Rules for purchase of own shares, Business Law and Ethics

Rules for Purchase of own shares:

So now next despite the rule in Trevor V Whitworth a company may purchase or acquire its own shares in the following cases:

a) Where it acquires its own fully paid shares otherwise than for valuable consideration, as in Re: Castiglione's Will Trusts (49),

b) Where it is a purchase of redeemable shares under S.60 of the Act. This is permitted because the redemption "shall not be taken as reducing the amount of the company's authorized share capital" if it is done in accordance with the provisions of the section.

c) Where the shares are acquired pursuant to the resolution for reducing the company's capital under S.68 of the Act. Such acquisition is permitted because the interests of the company's creditors would have been protected by the court at the time of confirming the proposed reduction.

d) Where the shares are purchased in pursuance of a court order under S.211 (2) on an application by the oppressed members. The shares purchased would be cancelled and the company's capital reduced accordingly.

e) Where the shares are forfeited for non-payment of a call, or where they are surrendered in lieu of a forfeiture.

Posted Date: 1/12/2013 4:17:10 AM | Location : United States







Related Discussions:- Rules for purchase of own shares, Assignment Help, Ask Question on Rules for purchase of own shares, Get Answer, Expert's Help, Rules for purchase of own shares Discussions

Write discussion on Rules for purchase of own shares
Your posts are moderated
Related Questions
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Types of Contract - Law of Contract However common law of US relating to the contract classifies contracts with the following categories as; Specialty Contra

what meaning of sales of goods

Question: (a) Explian the various stages that a Bill must go through before it becomes enforceable as a Law in Mauritius. (c) Mr. Vijay is the tenant of a house situated at

Question 1: (a) Explain what is meant by Subsidiary Legislation and the reasons for using such a Law. (b) Explain the ways in which Subsidiary Legislation is controlled.

In 2001, Puerto Rico enacted a law that requires specific labels on cement sold in Puerto Rico and imposes fines for any violations of these requirements. The law prohibits the sal

Relationship between Banker and Customer Therefore the relationship between a banker and the customer is a debtor-creditor association that was articulated In the chief case o

Benefits of non-accepting shareholders: The minority whose shares are acquired compulsory under s.210 are entitled to all the benefits included in the original offer and accep

On 10 March 2011 the ACCC accepted an undertaking under the Competition and Consumer Act 2010(Cth) from Patterson Cheney Pty Ltd in relation to alleged misrepresentations made by t

What is Policy Clustering Adoption of policies is motivated by the observation that nation-states, or some other jurisdictional unit, choose similar institutions within a fairl