Here are key things to know about Infosys share buyback plan

Infosys announced on Friday that it has sought shareholders' approval to change the company's Articles of Association, which includes provision for share buyback. 

Here are key things to know about Infosys share buyback plan:

1. The company's latest announcement comes after its co-founders N R Narayana Murthy and others, who own 12.75% stake in the firm, have questioned the pay of its chief executive officer Vishal Sikka and severance payouts given to others, including its former finance head Rajiv Bansal 

2. Two of Infosys former chief financial officers namely T V Mohandas Pai and V Balakrishnan have recently exhorted institutional investors to raise questions about the huge cash pile on the company's books, saying investors have an obligation to protect their investment 

3. "The board has recommended the adoption of new Articles of Association of the company in conformity with the Companies Act, 2013 to the shareholders for approval," Infosys had said in filing to BSE on Thursday. 

ALSO READ: Infosys seeks shareholders nod to amend Articles of Association; may go TCS, Cognizant way for share buyback

4. A share buyback improves return on equity (RoE) of the company for its shareholders, according to Zeebiz reported dated February 21.

5. Infosys, which had liquid assets, including cash and cash equivalents and investments worth Rs 35,697 crore (about $5.25 billion) on its books at the end of December 2016, has been under pressure from investors to utilise the amount either through share buyback or generous dividend, cited the PTI report on Friday.

6. There were media reports that Infosys may consider a Rs 12,000 crore share buyback, but the company has maintained that it "periodically" reviews the capital allocation policy, PTI reported. It had added that the management will take a decision on share buyback at an "appropriate time"

7. Infosys in a postal ballot notice issued on Friday said, "Power to purchase its own equity shares or other securities by way of a buy-back arrangement has been included."

8. In post ballot notice, it said that as per article 13, the power of the board to issue shares at a discount has been deleted in line with the Companies Act, 2013.

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