Question

Question No. 11
The failure, if any, to complete the buy-back within the time is to be specified by board's report. Is this a mandatory disclosure?​

Answer 1

Answer:

sᴛᴀɴᴅᴀʀᴅs) ᴏғ ᴛʜᴇ ᴄᴏᴍᴘᴀɴɪᴇs ᴀᴄᴛ, . ᴇxᴄᴇᴘᴛɪɴɢ ᴛʜᴀᴛ ᴛʜᴇ ʀᴇᴀsᴏɴs ғᴏʀ ᴛʜᴇ ғᴀɪʟᴜʀᴇ, ɪғ ᴀɴʏ, ᴏɴ ᴛʜᴇ ᴘᴀʀᴛ ᴏғ ᴛʜᴇ ᴄᴏᴍᴘᴀɴʏ ᴛᴏ ᴄᴏᴍᴘʟᴇᴛᴇ ᴛʜᴇ ʙᴜʏʙᴀᴄᴋ ᴡɪᴛʜɪɴ ᴛʜᴇ sᴘᴇᴄɪғɪᴇᴅ ᴛɪᴍᴇ ᴘᴇʀɪᴏᴅ ᴀʀᴇ ʀᴇǫᴜɪʀᴇᴅ ᴛᴏ ʙᴇ ᴅɪsᴄʟᴏsᴇᴅ ɪɴ ᴛʜᴇ ʙᴏᴀʀᴅ ᴏғ ᴅɪʀᴇᴄᴛᴏʀs' ʀᴇᴘᴏʀᴛ ᴀs ᴘᴇʀ sᴇᴄᴛɪᴏɴ (ʙ) ᴏғ ᴛʜᴇ ᴄᴏᴍᴘᴀɴɪᴇs (ᴀᴍᴇɴᴅᴍᴇɴᴛ) ᴀᴄᴛ, .

Answer 2

Answer:

Time limits: is the failure to complete the buy-back within the time is to be specified by board's report. Buy-back shall be completed within a period of 1 (one) year from the date of passing of SR or Board Resolution, as the case may be. 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.

Explanation:

In some circumstances, Section $68$ of the Companies Act, $2013$allows a business to purchase its own shares or other securities. -Buy-back of shares is governed by Sections $68 to 70$ of the Companies Act, $2013$and Rule $17$ of the Companies (Share Capital and Debentures) Rules, $2014.$

1. Source of Buy-Back: Purchase of Shares from Free Reserves, Securities Premium Account, or Proceeds of the Issue of Any Shares or Other Specific Securities: A firm may purchase. its shares from its free reserves, securities premium account, or proceeds of the issue of any shares or other specified securities. However, the proceeds of an earlier issue of the same form of shares cannot be used to buy back any sort of shares.