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A company conducted a buy-back of 10% of its equity in August 2020. Can it conduct another 10% buy-back in September 2020?
ANo — Section 68 requires a 12-month gap between two buy-backs
BYes, the annual cap is 25%
CYes, with an ordinary resolution
DYes, with a special resolution
Answer & Solution
Correct answer: A. No — Section 68 requires a 12-month gap between two buy-backs
1. Section 68(2) — no offer of buy-back shall be made within 12 months from the date of the closure of the preceding buy-back.
2. The annual cap is separate; the time gap is mandatory.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Share Capital and Debentures_