Regulatory Alerts2014-06-25
Added · Updated
Communiqué On Buy-Backed Shares
The Capital Markets Board issued Communiqué II-22.1 to establish the procedures and principles for publicly held corporations to acquire their own shares or accept them as pledge. The regulation mandates that buy-back programs require general assembly authorization, sets a ten percent limit on buy-backed shares relative to capital, and imposes strict public disclosure obligations for all transactions. Additionally, it defines specific situations where share acquisitions are exempt from insider trading or manipulation classifications provided certain conditions are met.
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