alleryStart learning →Which is a recognised method of buy-back under the Act?
ARights issue to members
BPrivate debenture placement
CPurchase from existing members
DCall on partly paid shares
Answer & Solution
Correct answer: C. Purchase from existing members
A company may buy back from existing shareholders on a proportionate basis, from the open market, or from ESOP or sweat equity holders.
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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