Why company cannot buy its own share?if the share is prefences share, can buy?
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my question is like this: X owned 3% of shares in Bhd. His sis also own 3% in same company,after sis die,his family call him buy that shares. how the answer if his sis were preference shares.... who know ? can share ur knowledge n answer? my law so blur....XD
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Answer:
Compaies can buy their own shares, up to a point. Imagine if they were allowed to buy all of them, though: They would effectively own themselves! Preference shares are usually shares that yield a higher dividend, but have no voting rights. Apart from that, they can usually be sold normally.
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