Companies Act, 2013: Should a company be allowed to purchase its own shares directly from its shareholders?
company bar_exam intermediate discussionI think this is a no-brainer! Company should not be allowed to purchase its own shares directly from its shareholders. It's an opaque way to manipulate share prices, avoid regulatory scrutiny and siphon funds. The Companies Act, 2013 already prohibits a company from buying back its own shares in certain circumstances, but what's the logic behind allowing it to purchase from its own shareholders? It's a recipe for corporate governance disasters. What about your thoughts, guys? Should we allow this or not? Is there some hidden benefit I'm missing? Or are we just falling prey to the whims of corporate interests?
0 comments
0 Comments
Sign in to join the discussion.