SMALL
INVESTORS’ WELFARE ASSOCIATION
Regn No. F-72744 (M)
703, Meadows, Sahar Plaza Complex,
Andheri Kurla Road, J.B. Nagar, Andheri ( E) , Mumbai 400 059
Email : SirenBajao@gmail.com Tel : +91-22-4215 1349
The above
company has informed BSE that they approached you with their desire to withdraw
the already announced Buy-Back offer of shares. The reasons given are:
1.
“Increase
in the amount of Buyback obligation due to the tax proposal in the Finance Bill
2019”
2.
Not
permitted to increase the buyback amount beyond the amount approved by shareholders.
3.
In
case the offer is implemented they have to borrow which is not permitted.
We would like to point out that as per Buyback of Securities Regulations
clause 24 (I) (d) it cannot be withdrawn.
“the company shall not withdraw the offer to
buy-back after the
Tax draft letter of offer is filed with the Board
or public announcement
of the offer to buy-back is made;”
The only
problem the management is having is the requirement of additional funds to pay
the Income Tax. We would like point out as follows:
· No action to defeat a Tax provision of the country can be
encouraged.
· As per the extant provision of law
such withdrawal permission cannot be allowed.
· No tax payment can be refused for
want of sanction by the Board or the shareholders.
In the circumstances,
we urge you to please reject such request for withdrawal of Buyback offer
already announced.
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