In continuation of my previous article w.r.t. Seeking confirmation by the company from the shareholders who have received the payment as consideration for tendering his equity shares.
However, there may be the shareholders would be unwilling/ refuse to tender their shares with a view to keeping their holding for a longer term in the company and also to maximize their wealth.
Let’s take a situation that the company has four equity shareholders, out of that 2 have accepted the Buyback offer also tendered their shares and 2 has been shown their unwillingness to tender their shares.
In that case, the shareholders have refused to tender their shares must give intimation to the company to that effect. The following specimen may be in use for any professional dealing with such issue:
Date
The Company Secretary
Company Name
Address
Sub: Un-willingness cum Non-objection to tender the equity share and to proceed for the Buy-back
Ref: Buy-Back of the Company
Dear Sir,
I, ………………………………R/o,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,holding ……………………….….equity shares, represented………. (%) of the paid-up share capital of the company against folio no/ demat no………………………, wish to hereby inform you my un-willingness to tender my said holding for the Buy-back of equity shares offered by the Company against its letter of offer dated…………………
I also would hereby like to convey my ‘Non-Objection’ to the company to proceed for the Buy-back of equity shares from other shareholders.
Kindly do take the same on your record.
Yours truly
Name
Equity shareholder
Corporate Governance 