Buy-back obligations require accurate offer documents, separate bank account funds, cash-only consideration and prohibition on borrowed funds. Companies undertaking buy-backs must ensure the letter of offer is accurate and directors accept responsibility; not issue any new shares until offer closure; not withdraw the offer after filing the draft letter of offer; open a separate bank account for earmarked funds and pay consideration only in cash or bank draft/pay order; and refrain from using borrowed funds from banks or financial institutions to finance the buy-back.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Buy-back obligations require accurate offer documents, separate bank account funds, cash-only consideration and prohibition on borrowed funds.
Companies undertaking buy-backs must ensure the letter of offer is accurate and directors accept responsibility; not issue any new shares until offer closure; not withdraw the offer after filing the draft letter of offer; open a separate bank account for earmarked funds and pay consideration only in cash or bank draft/pay order; and refrain from using borrowed funds from banks or financial institutions to finance the buy-back.
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