What is Transfer of certain sums to capital redemption reserve account What is Prohibition for buyback in certain circumstances Section 69 and 70 of Indian Companies Act 2013

Transfer of certain sums to capital redemption reserve account and Prohibition for buyback in certain circumstances are defined under Section 69 and 70 of Indian Companies Act 2013. Provisions under these sections are:

Section 69 of Indian Companies Act 2013 "Transfer of certain sums to capital redemption reserve account"

(1) Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet

(2) The capital redemption reserve account may be applied by the company, in paying up un-issued shares of the company to be issued to members of the company as fully paid bonus shares.

 

Section 70 of Indian Companies Act 2013 "Prohibition for buy-back in certain circumstances"

(1) No company shall directly or indirectly purchase its own shares or other specified securities -

(a) through any subsidiary company including its own subsidiary companies;

(b) through any investment company or group of investment companies; or

(c) if a default, is made by the company, in the repayment of deposits accepted either before or after the commencement of this Act, interest payment thereon, redemption of debentures or preference shares or payment of dividend to any shareholder, or repayment of any term loan or interest payable thereon to any financial institution or banking company:

Provided that the buy-back is not prohibited, if the default is remedied and a period of three years has lapsed after such default ceased to subsist.

(2) No company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provisions of sections 92, 123, 127 and section 129.

 

What is Power of limited company to alter its share capital What is the procedure for Further issue of share capital Section 61 and 62 of Indian Companies Act 2013

What is Issue of bonus shares Notice to be given to Registrar for alteration of share capital Section 63 and 64 of Indian Companies Act 2013

Is unlimited company to provide for reserve share capital on conversion into limited company What is Reduction of share capital Section 65 and 66 of Indian Companies Act 2013

What are the Restrictions on purchase by company or giving of loans by it for purchase of its shares What is Power of company to purchase its own securities Section 67 and 68 of Indian Companies Act 2013

What is Transfer of certain sums to capital redemption reserve account What is Prohibition for buyback in certain circumstances Section 69 and 70 of Indian Companies Act 2013

What is Debenture How to issue debenture Section 71 of Indian Companies Act 2013

What is Power to Nominate Section 72 of Indian Companies Act 2013

ACCEPTANCE OF DEPOSITS BY COMPANIES

What is Prohibition on acceptance of deposits from public Section 73 of Indian Companies Act 2013

Repayment of deposits accepted before commencement of this Companies Act What is Damages for fraud Section 74 and 75 of Indian Companies Act 2013

What is Acceptance of deposits from public by certain companies What is the Duty to register charges, etc Section 76 and 77 of Indian Companies Act 2013

What is Application for registration of charge What is the meaning of Section 77 to apply in certain matters What is Date of notice of charge Section 78, 79 and 80 of Indian Companies Act 2013

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap