Explain the relevance of share outstanding test of buyback . Being In companies act there is no limit that company can not buyback shares greater than 25 percentage of no of shares outstanding .So, Why this test is used in calculating maximum buyback ?
Section 68 only specifies that company can't buyback more than 25% of paid up capital & reserve, there is no words which is stating that company can't buyback more than 25% of NO. OF SHARES OUTSTANDING. @ ROHITDESAI
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