Regulatory Alerts2023-10-17
Added · Updated
The Unlisted Companies (Buy-Back of Shares) Regulations, 2023
These regulations establish the framework for unlisted public and private companies in Pakistan to purchase their own shares under Section 88 of the Companies Act, 2017. Eligibility requires distributable profits or reserves, a special resolution by members, board recommendation confirming solvency for twelve months, and no objection from secured creditors. The buy-back process mandates a sixty-day offer period with proportional offers to existing shareholders, payment via banking channels within ten days, and immediate cancellation of purchased shares. Companies must file a special resolution and a final return with the Registrar within fifteen days of the respective events, with contraventions subject to penalties under the Act.