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Company buying its own shares funded by a loan: entire transaction held void

11 November 2019

Speedread: In The Enterprise Fund III Ltd & Ors v OUE Lippo Healthcare Ltd (2019), the Singapore Court of Appeal held that where a company that had been given standby credit facility in order to buy shares in itself, the entire transaction including the standby credit facility was void as being in breach of the prohibition against a company holding shares in itself.