Our Recommendations :-
Follow CA Final FB Page

What are the provisions of Authority and Quantum of Buy back of Securities?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked over 2 years ago

Hi May I know, What are the provisions of Authority and Quantum of Buy back of Securities?

    0       0 Answer Now Comment Report
3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

1. Authority in the Articles – Buyback of securities should be authorized by the Articles of Association – Section 77A (2)(A) 2. Board resolution and quantum of buy back – By passing a resolution, the Board can authorize the buy – back of securities not exceeding 10% of the total paid – up equity capital and free reserves of the company. Section 77A (2) 3. Shareholders’ resolution and quantum of buy – back – By passing a special resolution, the buyback of securities is or less than twenty-five per cent of the total paid-up capital and free reserves of the company. Section 77A (2)(b)& (c)

    0       0 Comment Report
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below – 
For any questions Request A Call Back  
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 shalu answered over 2 years ago

BUY BACK OF SECURITIES • must be authorized by its articles; • a special resolution has been passed at a general meeting of the company authorizing the buy-back, but the same is not required when: i. The buy-back is 10% or less of the total paid-up equity capital and free reserves of the company; and ii.such buy-back has been authorized by the Board by means of a resolution passed at its meeting; • The buy-back is twenty-five per cent or less of the aggregate of paid-up capital and free reserves of the company. But in case of Equity Shares, the same shall be taken as 25% of paid up equity capital only. Debt equity ratio should be 2:1. Where: Debt is aggregate of secured and unsecured debts owed by the after buy-back Equity is aggregate of the paid-up capital and its free reserves; • All the shares or other specified securities for buy-back are fully paid-up; • If shares or securities are listed, buy back will be in accordance with the regulations made by the Securities and Exchange Board in this behalf; and • The buy-back in respect of unlisted shares or other specified securities is in accordance Share Capital and Debentures Rules, 2014. • No offer of buy-back shall be made within a period of one year from the date of the closure of the preceding offer of buy-back, if any.

    0       0 Comment Report
Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered over 2 years ago

Authority and Quantum of Buy back of Securities ----------------------------------------------- **1. Authority in the Articles** – Buyback of securities should be authorized by the Articles of Association – Section 77A (2)(A) **2. Board resolution and quantum of buy back** – By passing a resolution, the Board can authorize the buy – back of securities not exceeding 10% of the total paid – up equity capital and free reserves of the company. Section 77A (2) **3. Shareholders’ resolution and quantum of buy – back** – By passing a special resolution, the buyback of securities is or less than twenty-five per cent of the total paid-up capital and free reserves of the company. Section 77A (2)(b)& (c) **4. Maximum Quantum of buy back** – A company cannot buy back more than 25% of its total paid – up capital and free reserves. Section 77A (2)(c) **5. Further offer of buyback** - No offer of buy-back shall be made within a period of three hundred and sixty-five days reckoned from the date of the preceding offer of buy-back, if any. Second proviso to Section 77A(2)

    0       0 Comment Report
Get Notifications
Videos
Books
Notes
Loading
SIGN UP
Watch best faculty demo video classes

These top faculty video lectures will
help u prepare like nothing else can.