buy back of shares

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2010 Can security premium be used for amount to be transferred to the Capital Redemption Reserve?

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

08 September 2010 yes

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2010 thanks,

i was bit confused, as section 78 of the Indian Companies Act, 1956 restricts the uses of security premium (issue of bonus shares, redemption premium, w.off preliminary expenses, w.off expenses on issue of securities.)..

While section 77A, states that a company can buy back its shares out of free reserves, security premium or new issue....

Then, i got clear, that when security premium is transferred to Capital Redemption Reserve, it shall be used only for issue of bonus shares... (both section 77A and 78 are complied with)

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

08 September 2010 I answered taking into account that section 77A, states that a company can buy back its shares out of free reserves, security premium or new issue.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Tushar Gupta

madhuseshu yathirajam

CA.K.RAMAKRISHNA. PRABHU

Krishnan V

chandradhass sathish

Subscribe Now

buy back of shares

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA