Please Help: Buy Back
Posted Date : 16-Aug-2011 , 08:34:24 pm | Posted By: Ghanshyam Kumar
Category :
Corporate Law | Answers :
0|
Comments :
1| Hits: 507
|
|
Can the Board of Directors of a Co. revoke their buy-back resolution? |
 |
|
|
|
| Comments |
| Posted By : Vikas |
18-Aug-2011, 08:19:10 |
| Dear Ghanshyam
As per Sub Clause (b) of Section 2 of Section 77A of the Companies Act, " A Special Resolution has been passed in general meeting of the company authorising the Buy back."
if we interpret the above mentioned clause, i find that, when authorisation is given by shareholder in General meeting then how can BOD revoke the resolution. it means BOD has no power to revoke Buy Back option.
Again Section 292 states that " The power to authorise the buy back referred to in the 1st proviso to Clause (b) of sub section (2) of section 77A" to be exercised only at Meeting.
hence as per my view, BOD can do this only at General Meeting. |
| |
|
|
|
|
|
