LEGALIMPLICATIONSOFSHAREBUYBACKFinal文档格式.docx
- 文档编号:15721333
- 上传时间:2022-11-15
- 格式:DOCX
- 页数:13
- 大小:30.86KB
LEGALIMPLICATIONSOFSHAREBUYBACKFinal文档格式.docx
《LEGALIMPLICATIONSOFSHAREBUYBACKFinal文档格式.docx》由会员分享,可在线阅读,更多相关《LEGALIMPLICATIONSOFSHAREBUYBACKFinal文档格式.docx(13页珍藏版)》请在冰豆网上搜索。
LEGALIMPLICATIONSOFSHAREBUYBACKFinal@#@LEGALIMPLICATIONSOFSHAREBUYBACKS@#@By@#@ChiefAnthonyI.IdigbeSAN*@#@ @#@@#@“Whencompanieswithoutstandingbusinessesandcomfortablefinancialpositionsfindtheirsharessellingfarbelowintrinsicvalueinthemarketplace,noalternativeactioncanbenefitshareholdersassurelyasrepurchases”@#@WarrenBuffett@#@ @#@@#@GentlemenoftheFourthEstate,ImuststraightwayconfessmydelightandhonourtobeinyourmidsttodaytodiscussthetopicIhavebeenaskedtohandle.@#@ThisisbecausewhenIreceivedtheinvitationletterfromtheorganizersofthisprogramme,Iwassurprisedtoseethatitwasissuedbymembersoftheprintandelectronicmediareportingintheareaofcapitalmarketwhohadcometogetherwithagoalofdischargingtheirdutiesinamostresponsiblemannerintermsoffinancialjournalism.Itismostheartwarmingtoseesuchfocusedintenttoenhancedprofessionalismbasedonaproperunderstandingofthearduoustechnicalfinancial/legalinformationthattheyreporton.YourworkisultimatelyconsumedbymembersofthegeneralpublicandinparticularstakeholdersintheNigerianCapitalMarketandformsthecheapestandbroadestwayofinformingtheirinvestmentdecisions.Itistothecreditofyourorganization,thatyoustrivetotrainyourmemberstostayabreastofthelatestdevelopmentsintheNigerianCapitalmarketandevenoutsidetheshoresofNigeria.@#@@#@ThenewmoredetailedSECrulesregulatingsharebuybacksisaninterestingdevelopmentfortheNigerianCompanylawandpracticeaswellasawelcomedevelopmentaimedatcurbingsharppracticesofdirectorsandcontrollingshareholdersusingcompany’sresourcestoentrenchtheircontroloverthecompany.@#@ThetraditionalconceptionunderNigerianCompanyLawisthatcompaniesshouldnotbeseentobuytheirownshares.Itwasfeltthattherewasaninherentconflictinsuchatransaction.However,bestpracticeshavebeenchangingworldwideinrelationtotheconceptofsharebuyback.Thequestionwouldnowseemtobetowhatextentisitdesirabletohavegovernmentinterventionbywayofregulationratherthanabsoluteprohibition.@#@Therelevantruleforourreviewhereisrule109Bformerlydescribedasrelatingto“acquisitionofownsharesbycompanies”andnowmeanttoread“rulesrelatingtosharebuy-back”.Obviouslyhere,themodificationofthetitleofthisparticularRulehasnootherrolethantoalignsametothespecifictechnicalterm/jargonusedininternationalbestpracticeoffinancialandcapitalmarketcircles.Hence,theterms“buybacks”,“stockbuybacks”,“sharerepurchase”areclearlyandinterchangeablyuseddependingonthejurisdictions@#@BeforeweproceedtoanalyzetheruleslaidoutbytheNigerianSEC,itispertinenttohaveafullgraspoftheconceptofsharebuybackbydefiningthemeaningandscopethereof,itsroleintermsofcapitalallocation,motivationforuseofsharebuybacksbycompaniesandimperativeforregulationofsharebuybacks.@#@WeshallthereafterexaminetheregulatoryframeworkcreatedbySECwithrespecttosharebuybacksbycompaniesinrelationtoempoweringthem,theapplicablestatutesandthenmakesuggestionsforconductofbusinessmanagersinconsideringsharebuybackasabusinesstoolandconsiderwhetherthereisanyneedforfurtherregulatoryintervention.@#@ @#@@#@THETHEORETICALCONCEPTOFSHAREBUYBACKSASACORPORATEMANAGEMENTTOOLTODELIVERMOREVALUETOSTAKEHOLDERSINTHECAPITALMARKET@#@Meaningofsharebuyback@#@Asthetermvividlyimplies,abuybackevokestheideaofacompanyusingitscashtobuyitsownshares,inotherwordsinvestinginitself.Asweshallseebelow,inNigeriathereisarestrictionplacedonpubliccompaniesbothbytheCAMAandSECRulestotheeffectthatthecompanycanonlydrawthecashneededfortherepurchasefromaspecificsource.Moreover,thebuybackscanonlybecarriedoutinacertainmannerwithinacertaintimeframeandwithinacertainproportion.@#@ThejustificationfortheserulesisbetterseenbyreferencetothehistoryofcompanylawandtheircodificationintheCAMA.Historically,unscrupulousmanagersandpromotersofacompanycouldcreateanartificial“bubble”orimpressionofbuoyancyofthesharesofacompanyandfueldangerousspeculativetradingofthesharesbyrepurchasingthoseshareswithloans.InordertoavoidtheprevailingincidenceoffraudcommittedontheunsuspectingmembersoftheGeneralPublicbythosewhowererunningtheaffairsofthecompany,rulesweredevelopedinthehistoryofcorporatelawpractice,andtheCAMAparticularly(Ss.158to165)placesabaroncompaniesacquiringtheirownissuedsharesortotakingadvantageofanyloanorfinancialassistancetoacquireitsownshares(Ss159and160
(1)CAMA).Theruleisthatinordertoavoidtheincidenceoffraud,acompanycannotbuyitsownsharesorassista
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- LEGALIMPLICATIONSOFSHAREBUYBACKFinal
![提示](https://static.bdocx.com/images/bang_tan.gif)