ISLAMABAD: Unlisted Companies (Buy-Back of Shares) Regulations, 2022 was adopted by the SECP on Thursday.
SECP approves Unlisted Companies (Buy-Back of Shares) Regulations, 2022
The aim of the draft is to boost investor confidence and facilitate startups by providing an easy exit option to all shareholders. The draft will provide procedures, eligibility criteria, and mechanisms to be adopted by unlisted companies in order to buy back their already issued shares.
Companies’ Regulations to Boost Investor Confidence
The unlisted companies will have to abandon the number of buyback shares from the total issued shares, a press release of SECP said.
Declaration to be taken by purchasing firm’ board of directors
The draft regulations suggest the board of directors of a purchasing firm take a declaration to the effect that the company is able of meeting its liabilities.
The Companies (Amendment) Act, 2021 has allowed all companies including private and unlisted public companies to buy back their shares.
Earlier, only the listed companies were permitted to buy back their issued shares.
