Please Help: Bonus Share
Posted Date : 08-Sep-2012 , 10:53:17 pm | Posted By RAKHI CHAUDHARY
the buy-back is of less than twenty five per cent of the total paid-up capital and free reserves of the company: and
the buy-back of equity shares in any financial year shall not exceed twenty five per cent of its total paid-up equity capital in that financial year Plz interprete the above..What these lines want to say..In Ist line 25% of paid up+ reserve but in 2nd line 25% of paid up capital
the buy-back of equity shares in any financial year shall not exceed twenty five per cent of its total paid-up equity capital in that financial year Plz interprete the above..What these lines want to say..In Ist line 25% of paid up+ reserve but in 2nd line 25% of paid up capital
Category : Corporate Law | Answers : 2 | Comments : 2 | Hits : 249
Answers
Answer By: SHIKHA SONI
here it means that--- 1st line means maximum limit of AMOUNT OF SHARES TO BE BOUGHT BACK is equal to or less than 25% of total paid up capital and free reserves .
2nd lines means that---- maximum limit of NUMBER OF SHARES TO BE BOUGHT BACK is equal to or less than its total paid up equity capital
2nd lines means that---- maximum limit of NUMBER OF SHARES TO BE BOUGHT BACK is equal to or less than its total paid up equity capital
Answer By: Akanksha Handa
As per first lines it quite clear that Company cannot buyback moe than 25 % of Total Paid up Capital and free reserves. and second line is talking aboout financial year, which means you cannot buy back more than 25% of piad up capital in one financial year. if you have to do so than u have to repeat the process of buy back every year , to buy back the total desired amount of shares,,,....this what i conclude.
Comments
CA Sagar saraswat
09-Sep-2012 , 09:39:27 ami beleive in first line it is eq. + pref. paid up capital but in second line only eq.
SHIKHA SONI
10-Sep-2012 , 10:27:58 amhere it means that--- 1st line means maximum limit of AMOUNT OF SHARES TO BE BOUGHT BACK is equal to or less than 25% of total paid up capital and free reserves . 2nd lines means that---- maximum limit of NUMBER OF SHARES TO BE BOUGHT BACK is equal to or less than its total paid up equity capital