alleryStart learning →Board resolution buy-back cap on equity capital and free reserves
A25%
B10%
C20%
D15%
Answer & Solution
Correct answer: B. 10%
A board resolution can authorise a buy-back only up to 10 percent of paid-up equity capital plus free reserves.
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Under Section 68, specified securities includeAfter a buy-back, a remaining investor's proportionate ownershipThe details of the transfer to capital redemption reserve are to be disclosed in the40,000 shares of face value Rs 5 are bought back at Rs 9. Equity share capital is debited Which can absorb the premium paid on a buy-back?Shares that a company has bought back areWithin six months after a buy-back, a company may still make aThe register of bought back shares is kept at the company's