Share Buy-back Service
Share buy-backs enable companies to reduce their issued share capital.
Section 257A of the Corporations Act allows a company, unless prohibited by its articles, to buy back its issued shares provided the buy back complies with the procedures set out in the Act.
As it will be necessary for us to determine the type of buy-back intended we will require details of the proposed buy-back on the quotation request form. We will also require an up to date copy of the company's Constitution.
Considerations
Companies considering undertaking a buy-back offer should ensure that the Constitution does not prevent a buy-back.
It is the responsibility of the directors to ensure that a share buy-back does not cause the company to become insolvent. If it does, the directors may be personally liable for the loss. Further, if a share buy-back causes the company to become insolvent, the liquidator may be able to recover compensation from the selling shareholders.
What we provide
Our Share Buy-Back service is fully comprehensive and includes the preparation and supply of all notices and minutes of directors'/shareholders' meetings, explanatory memorandum to shareholders, share transfer forms and forms required for lodgement with the Australian Securities & Investments Commission.
Our service also includes all necessary advice relevant to the share buy-back and we ensure that the buy back complies with the procedures as set out in the Corporations Act.
To proceed please complete and forward the Quotation Request Form together with an up to date copy of the company's Constitution and company Extract.
Please contact us if you wish to discuss any aspect of the Buy-Back.