Sec 77(i) Vs 77A

Dear Friend,

Section 77(1) prohibits the companies from purchasing its own shares or specified securities unless the consequent reduction of capital is effected and sanctioned in pursuance of section 100 to 104 or 402.

Further, buy back results reduction of capital, but it does not requires Court approval.

Further Section 77A permits companies to buy its own shares or specified securities and this section has overriding effect of all the provisions contained in this Act.

To add further Section-77 is in the nature of restriction and not in the nature of Prohibition.

Further as mentioned by Ankur Section-77A is a specific section specifically allowing buyback by companies subject to the fulfillment of its provisions.

In case of any doubt plz post it.

Regards

Thanks both of them.

Thanks for appreciation.