TMI BlogPower of company to purchase its own securitiesX X X X Extracts X X X X X X X X Extracts X X X X ..... earlier issue of the same kind of shares or same kind of other specified securities. (2) No company shall purchase its own shares or other specified securities under sub-section (1), unless- ( a ) the buy-back is authorised by its articles; ( b ) a special resolution has been passed at a general meeting of the company authorising the buy-back: Provided that nothing contained in this clause shall apply to a case where- ( i ) the buy-back is, ten per cent or less of the total paid-up equity capital and free reserves of the company; and ( ii ) such buy-back has been authorised by the Board by means of a resolution passed at its meeting; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder clause ( b ) of sub-section (2) shall be accompanied by an explanatory statement stating- ( a ) a full and complete disclosure of all material facts; ( b ) the necessity for the buy-back; ( c ) the class of shares or securities intended to be purchased under the buy-back; ( d ) the amount to be invested under the buy-back; and ( e ) the time-limit for completion of buy-back. (4) Every buy-back shall be completed within a period of one year from the date of passing of the special resolution, or as the case may be, the resolution passed by the Board under clause ( b ) of sub-section (2). (5) The buy-back under sub-section (1) may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... back within seven days of the last date of completion of buy-back. (8) Where a company completes a buy-back of its shares or other specified securities under this section, it shall not make a further issue of the same kind of shares or other securities including allotment of new shares under clause ( a ) of sub-section (1) of section 62 or other specified securities within a period of six months except by way of a bonus issue or in the discharge of subsisting obligations such as conversion of warrants, stock option schemes, sweat equity or conversion of preference shares or debentures into equity shares. (9) Where a company buys back its shares or other specified securities under this section, it shall maintain a regist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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