Updated Online video classes available for CA,CS,CMA for May20 and Nov20 batch. Call: 1800-3000-0505

Can u help me friends.......


Shyamal Mistry (Final Student)     18 October 2010

Shyamal Mistry
Final Student 
 2 likes  282 points

| My Other Post

Hi friends.....can u tell me what is the maximum amount the company can buyback U/S. 77A....???

Is it 25% or 10% of (Paid up shares and Free Reserves).....???

avater

NUKUL GARG (Senior Associate Consultant)     19 October 2010

NUKUL GARG
Senior Associate Consultant 
 181 likes  1231 points

View Profile | My Other Post

It can't exceed 25% of paid up capital and free reserves.

avater

Amit Singh (Chartered Accountant)     19 October 2010

Amit Singh
Chartered Accountant 
 24 likes  270 points

View Profile | My Other Post

Maximum 25%

Sharad Saini (Student)     19 October 2010

Sharad Saini
Student 
 14 likes  286 points

View Profile | My Other Post

company can not buy back more than 25% of paid capital and reserves during its entire lifetime and it can not buy back more than 10% of capital and reserves in a single year.

avater

kapil (-)     19 October 2010

kapil
- 
 113 likes  809 points

View Profile | My Other Post

Originally posted by : Sharad Saini

company can not buy back more than 25% of paid capital and reserves during its entire lifetime and it can not buy back more than 10% of capital and reserves in a single year.

Agreed...

arunkumar (CA Final NCMP (Level - I))     19 October 2010

arunkumar
CA Final NCMP (Level - I) 
 4 likes  83 points

View Profile | My Other Post

Sec. 77A clearly provides that upto 25% of the paid up capital + free reserves shall be bought back in a year. hence upto 25% is permissable in a single year.

If the company intends to buy back less than or equal to 10% of the paid up capital + free reserves then a board resolution is sufficient.

avater

prasad8410 (Internal Audit Assistant)     19 October 2010

prasad8410
Internal Audit Assistant 
 9 likes  93 points

View Profile | My Other Post

At the maximum of not more than 25% of total (paid up share capital and free reserves) of the company in a finacial year..

manzoor ahmed (Auditor)     19 October 2010

manzoor ahmed
Auditor 
 47 likes  479 points

View Profile | My Other Post

Now nothing to reply i think i am late ;)

http://auditworkingpapers.weebly.com/

avater

Santhosh Poojary (SIEMPRE AHÍ PARA TI)     19 October 2010

Santhosh Poojary
SIEMPRE AHÍ PARA TI 
 2659 likes  15587 points

View Profile | My Other Post

Company Cannot  buyback More than 25% of  Paid up Capital and Reserves during Financial Year.

avater

swapnil (CA Final)     19 October 2010

swapnil
CA Final 
 40 likes  558 points

View Profile | My Other Post

1. buy back can be possible upto 25% of paid-up share capital + free reserve, 

provided, special resolution has been passed and only 1 buy back in a single Financial Year for e.g

first buy back is 1.11.2007

than second buy back is 1.1.2008  = it is wronge [not possible]

but buy back on 11.4.2008  =  it is validly possible, because in a single F.Y.

 

2. Buy back can be possible upto 10% of paid-up share capital + free reserve, 

provided, Board Resolution has been passed [no need of special resolution], and tha gap between 2 buy is subject to the 365 days. it means that exactly 365 days. for e.g

first buy back is 1.7.2006

than second buy back is possible on or before 1.7.2007.

if buy back is make before 1.7.2007  = than it is not possible to buy back - and not a valid buy back

so that why i am saying exactly 365 days.

 

1 Like

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »