76C. Authority for off-market acquisition on equal access scheme

Question 1

76C. Authority for off-market acquisition on equal access scheme

Answer 1

General overview
[76C.01] This statutory provision makes an inroad into the capital maintenance rule by specifically allowing companies to repurchase their own shares in accordance with the provisions of s 76B. Briefly, a company is allowed to buyback its own shares subject to a ceiling of 20% of the total number of ordinary shares of the company within the relevant period. There are four methods of share buybacks that are permitted by the Act which apply to both unlisted and listed shares.