142 Public companies buying back their own shares

Public companies buying back their own shares

Generally, a company cannot buy back its own shares. Public companies may purchase its own shares under Section 67A of the Act provided that:

1. The articles permit the company to do.

2. The company is solvent at the date of purchase.

3. The purchase is made through the Stock Exchange on which the shares of the company are quoted.

4. The purchase is made in good faith and in the interests of the company.

A company may use its premium share account to buy back its own shares, as provided in Section 67A(3) Companies Act 1965.

 

Activity 3.5
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