Share buybacks have become commonplace in the business world. By purchasing its own shares, a company reduces the number of shares outstanding without affecting its reported earnings. This will invariably increase the company's earnings per share and the price of a share should rise accordingly.

In this context, DEF Bhd., a public listed company has decided to purchase its own shares. Advise the company on the procedure to buy back its own shares and the potential issues that may be encountered by the company by buying back its own shares. (10 marks)

(b) FGH Bhd. is a new public listed company. Recently the company has been having a lot of problems with one of its directors, John who is also a substantial shareholder of the company. The company has found out that he had allowed his interest to conflict with his duties on numerous occasions where he had profited at the expense of the company. Based on the case above, discuss the potential challenges that may be encountered by the company and the relevant procedure for removal of John from the Board of Directors. (10 marks) [Total: 20 marks]

(a) Share huybacks have become commonplace in the business world. By purchasing its own shares, a company reduces the number of shares outstanding without affecting its reported earnings. This will invariably increase the company's earnings per share and the price of a share should rise accordingly. In this context, DEF Bhd., a public listed company has decided to purchase its own shares. Advise the company on the procedure to buy back its oWn shares and the potential issues that may be encountered by the company by buying back its own shares. (10 marks) (b) FGH Bhd. is a new public listed company. Recently the company has been having a lot of problems with one of its directors, John who is also a substantial shareholder of the company. The company has found out that he had allowed his interest to conict with his duties on numerous occasions where he had proted at the expense of the company. Based on the case above, discuss the potential challenges that may be encountered by the company and the relevant procedure for removal of John from the Board of Directors. (10 marks) [Tots]: 20 marks]