Can a company buyback its shares without passing shareholders resolution?
Yes. A company may buyback its shares without shareholders’ resolution, to the extent of 10 per cent of its paid up equity capital and reserves. However, if a company intends to buyback its shares to the extent of 25 per cent of its paid up capital and reserves, then the same has to be approved by the Shareholders Resolution as specified in Section 77 A of Companies Act, 1956.
