Buy-back through tender offer requires proportionate repurchase from existing security-holders with a reserved allocation for small shareholders. A company may repurchase its shares or other specified securities from existing security-holders through a tender offer on a proportionate basis, with entitlements allocated among eligible holders accordingly. A statutory proviso requires a reserved allocation for small shareholders, determined by reference to either the number of securities the company proposes to buy back or the number of securities entitled as per shareholding, with the higher measure used to fix the reservation.
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 through tender offer requires proportionate repurchase from existing security-holders with a reserved allocation for small shareholders.
A company may repurchase its shares or other specified securities from existing security-holders through a tender offer on a proportionate basis, with entitlements allocated among eligible holders accordingly. A statutory proviso requires a reserved allocation for small shareholders, determined by reference to either the number of securities the company proposes to buy back or the number of securities entitled as per shareholding, with the higher measure used to fix the reservation.
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