Meaning of Buy Back of Shares best cs books notes
There is no definition given by the Company Act, 1956 about the buy back of shares.
But in simple words, we can say that buy back of shares means repurchase of its own shares by the company.
In other words, buy back of shares means a company buying its own shares..
Buyback is reverse of issue of shares by a company where it offers to take back its shares owned by the investors at a specified price;
this offer can be binding or optional to the investors
It was opted by company if there was an addition funds with company and there is no profitable application where these funds can be invested.