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Notice for the special resolution authorising buy-back must be accompanied by an explanatory statement disclosing:
AOnly the time limit
BOnly the necessity
COnly the price
DMaterial facts, necessity, class of security, amount, time limit
Answer & Solution
Correct answer: D. Material facts, necessity, class of security, amount, time limit
1. Step 1: Sec 68(2) requires the explanatory statement to include full disclosure of material facts, necessity, class of security, amount, and time limit.
2. Step 2: This ensures shareholders make informed decisions.
3. Step 3: Hence (A).
_Source: ICAI BoS CA Inter Paper 1, Ch 12 "Buy-Back of Securities"_