January 20, 2011
Here is a point to ponder upon. We are aware that as per the provisions for the Buy Back, a company which has bought back any security cannot make any issue of the same kind of securities in any manner whether by way of public issue, rights issue up to six months from the date of completion of buy back. Assuming that a Company has equity shares with common voting rights and also with differential voting rights (series A). Is it possible for such Company to buyback series A equity shares and within six months can it issue equity shares with common voting rights or equity shares with some other differential rights. In my view, a Pvt. Ltd. Company can do so. As per its Articles it can have 'n' no. kinds of capital and hence can treat equity shares with common voting rights as different kind from the equity shares with differential rights. Your views are invited.