Please Help: Bonus Share
Posted Date : 08-Sep-2012 , 10:53:17 pm | Posted By: RAKHI CHAUDHARY
Category :
Corporate Law | Answers :
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Comments :
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the buy-back is of less than twenty five per cent of the total paid-up capital and free reserves of the company: and
the buy-back of equity shares in any financial year shall not exceed twenty five per cent of its total paid-up equity capital in that financial year Plz interprete the above..What these lines want to say..In Ist line 25% of paid up+ reserve but in 2nd line 25% of paid up capital
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Answers:
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 Answer by: SHIKHA SONI |
| here it means that--- 1st line means maximum limit of AMOUNT OF SHARES TO BE BOUGHT BACK is equal to or less than 25% of total paid up capital and free reserves .
2nd lines means that---- maximum limit of NUMBER OF SHARES TO BE BOUGHT BACK is equal to or less than its total paid up equity capital
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| Answer by: Akanksha Handa |
| As per first lines it quite clear that Company cannot buyback moe than 25 % of Total Paid up Capital and free reserves. and second line is talking aboout financial year, which means you cannot buy back more than 25% of piad up capital in one financial year. if you have to do so than u have to repeat the process of buy back every year , to buy back the total desired amount of shares,,,....this what i conclude.
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| Posted By : SHIKHA SONI |
10-Sep-2012, 10:27:58 |
| here it means that--- 1st line means maximum limit of AMOUNT OF SHARES TO BE BOUGHT BACK is equal to or less than 25% of total paid up capital and free reserves .
2nd lines means that---- maximum limit of NUMBER OF SHARES TO BE BOUGHT BACK is equal to or less than its total paid up equity capital |
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| Posted By : CA Sagar Saraswat |
09-Sep-2012, 09:39:27 |
| i beleive in first line it is eq. + pref. paid up capital but in second line only eq. |
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