alleryStart learning →Section 73(5) allows the repayment reserve to be used only for what?
ACapital expenditure
BRepayment of deposits
CBuyback of shares
DPayment of dividends
Answer & Solution
Correct answer: B. Repayment of deposits
The reserve exists to protect depositors, so section 73(5) forbids any use other than repaying deposits.
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Related questions
Where must a company inviting public deposits upload the circular?A deposit circular stays valid for how long after the financial year closes (at most)?Who signs the circular copy sent to the Registrar under Rule 4(5)?On whose authority and name must a deposit circular be issued?An eligible company's public deposit circular is issued in which form?A section 73(2) company can send its member circular by which mode?After issuing the circular, what may a company not reserve a right to do?Who alone is entitled to brokerage on deposits procured for a company?