Investing in a private company is a personal decision contingent on sometimes, many personal factors. That being on the one side and on the other, the Company’s right to buy back shares.

Companies are in terms of the Companies Act 71 of 2008, as amended (hereinafter referred to as “the Act”) – allowed to buy-back its shares from their own shareholders. The effect of a share buy-back is that the shares bought back are cancelled and do not form part of the issued shares of an entity. In turn, it could then lead to an increase in the value of one or more of the shareholders’ shares of the company. This could have an effect on mandatory offer rules. If so, how should this be handled?

author avatar
Nicolene Schoeman-Louw
SchoemanLaw Inc
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.