M & A Share Buy Backs (360)
Presenters : Carmen Westermeyer CA(SA) , Caryn Maitland CA(SA)
Overview
This webinar offers an in-depth exploration of share buybacks, focusing on their legal, accounting, and regulatory frameworks. Share buybacks are a key tool used by companies for capital restructuring, downsizing, and management buyouts. This session will provide attendees with a comprehensive understanding of the Companies Act provisions, ethical considerations, and the financial implications of share buybacks in various corporate scenarios.
Learning Objectives
Attending this webinar will equip you with the following skills:
- Understand the key legal provisions in the Companies Act related to share buybacks, including authorizations and limitations.
- Analyze the impact of share buybacks on a company’s capital structure and financial reporting.
- Identify the ethical and governance considerations when executing share buybacks.
- Comprehend the accounting treatment and financial reporting requirements for share repurchases.
- Evaluate the risks and implications for directors and auditors involved in share buybacks.
Content
The webinar will cover the following topics:
- Legal Framework for Share Buybacks:
- Overview of relevant sections in the Companies Act (S36, S37, and S48).
- Key legal requirements for authorizing share buybacks in the Memorandum of Incorporation (MOI).
- Restrictions on share buybacks and implications for directors and subsidiaries.
- Accounting for Share Buybacks:
- Understanding the impact of share buybacks on capital and equity accounts.
- Pro-rata share repurchase examples and how reserves and cash are affected.
- Practical accounting entries for share repurchases.
- Ethics and Governance in Share Buybacks:
- Ethical considerations for directors and auditors in ensuring compliance with the law.
- The role of auditors in reviewing financial assistance for share repurchases and the Solvency & Liquidity test.
- Practical Case Studies:
- Examples of share buybacks in real-world scenarios, including management buyouts and capital restructuring.
- Implications for shareholders, including the loss of voting rights in subsidiaries
