A company is an association of person who come together
for carrying out a business jointly. Although, incorporated by its
members, a company has an independent existence. The members of the
company are known as its shareholders who contribute to its share
capital. In case of public company, the management often issues
shares of the company to public with a view to raise the capital
for carrying out its commercial transactions.
Buyback of Shares
The management in the form of board of directors of the company
are vested with numerous powers to run the affairs of the company
in a smooth manner. These include powers to make calls for unpaid
amount of shares, issue debentures, grant loans, borrow money,
invest company funds, corporate restructuring, etc. One of such
powers include the power to buy-back the shares of the company
itself.
