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).....???
9 Replies
NUKUL GARG
(Senior Associate Consultant)
(1231 Points)
Replied 19 October 2010
It can't exceed 25% of paid up capital and free reserves.
Sharad Saini
(Student)
(286 Points)
Replied 19 October 2010
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.
kapil
(-)
(809 Points)
Replied 19 October 2010
| 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))
(83 Points)
Replied 19 October 2010
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.
prasad8410
(Internal Audit Assistant)
(93 Points)
Replied 19 October 2010
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)
(479 Points)
Replied 19 October 2010
Now nothing to reply i think i am late ;)
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 19 October 2010
Company Cannot buyback More than 25% of Paid up Capital and Reserves during Financial Year.
swapnil
(CA Final)
(598 Points)
Replied 19 October 2010
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.
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