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In a buyback of shares, a company wants to buyback 25% of its issued capital at a price per share by which the total value of the transaction will be less than 25% of it paid-up capital and free reserves

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In a buyback of shares, a company wants to buyback 25% of its issued capital at a price per share by which the total value of the transaction will be less than 25% of it paid-up capital and free reserves. The CFO says that the buyback is invalid. The investment banker says the buyback is valid. Who is right?

(a) CFO      (b) Investment Banker