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
Perpetual Succession:                      According to the Concise Oxford Dictionary, "perpetual" means, inter alia, "applicable, valid, for ever or for indefinite time " wh

Business Names:                             If a company has a place of business in Kenya and carries on business under a business name which does not consist of its corporate

State succession concerns international organizations Issue regarding state succession concerns international organizations. There are more than 30,000 treaties entered into be

VOIDABLE ALLOTMENTS: An allotment of shares is voidable if it is made in breach of- a)      Section 49 (1): by having been made before the minimum subscription was raised o

Intellectual property refers to creations of the mind like inventions, artistic and literary works, designs, and more used for profit. There are two categories of intellectual prop

QUESTION (a) List eight main objectives of tax treaties (b) Explain carefully how cases of dual residence for both individuals and companies would be resolved by the applica

1 With reference to the material discussed in class n in the reading over the last few weeks, I would like you to continue a fours on the ethical things that we can all do in our e

Act defined a traffic indication: However in EVANS v CROSS, Evans was charged by ignoring namely, a traffic sign, a white line painted in the middle of a road, whether overtak

QUESTION 1 Give an account of the distinct methods according to which information can be collected for policy analysis QUESTION 2 "Policy Evaluation marks the final sta

Rules Relating to an Offer - Law of Contract However the case law relating to an offer has established the following rules: 1. Such offer may be oral plus written or may be