Question: * Continue - per Lord Watson in Trevor v Whitworth (1887) 12 App Cas 409 The principle laid down in Trevor v Whitworth is a

* Continue

- per Lord Watson in Trevor v Whitworth (1887) 12 App Cas 409

The principle laid down in Trevor v Whitworth is a company is prohibited from purchasing its own shares. Besides, a company has to comply with the statutory requirements if it intends to return the capital to the shareholders.

In light of the passage above, discuss THREE (3) reasons why a company shall not buy back its shares.

Answer shall be in paragraph and essay form Essay shall not exceed 900 words

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