QFMA issues controls for company’s buyback of its own shares for purpose of selling
The Peninsula
Doha, Qatar: The Qatar Financial Markets Authority issued new controls for a company s buyback of its own shares with the intention of selling. These...
Doha, Qatar: The Qatar Financial Markets Authority issued new controls for a company’s buyback of its own shares with the intention of selling. These new controls fall within the framework of the Authority’s endeavors to develop the Qatari capital market and bolster investor confidence. Hence, the Authority affirms its commitment to protecting the rights of investors and ensuring a fair and transparent investment environment.
Set out hereinafter are the most significant provisions of the new controls:
Whereas a company may buyback a percentage of its own shares with the intention of selling, pending the approval of the Authority, this activity shall be carried out in accordance with the following controls and procedures outlined by the Authority:
- The Authority and the Market shall be notified of the Board of Directors’ resolution to buyback a percentage of the company’s shares immediately upon its issuance.
- The application shall be submitted to the Authority by using the approved form to purchase a maximum of 10% of the fully-paid issued shares or to purchase the shares in excess of the ownership limit stipulated in the company’s Articles of Association within two days as of the date of the issuance of the Board of Directors’ resolution approving the buyback transaction, whilst attaching the documents required by the Authority to finalize the transaction thereof.
