Please Help: Sec 77
Posted Date : 15-Jan-2012 , 04:45:36 pm | Posted By: Pankaj
Category :
Corporate Law | Answers :
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Comments :
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As per sec 77 of Co. act 1956 a company can't buy its own shares weather directly or indirectly or can't give any financial assistance for the same subject to certain exception and amended sec 77A.
But in case in the co invest in there shares via. mutual funds weather the same section applies or not???? |
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Answers:
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 Answer by: AKHIL MAHESHWARI |
| Yes, the same section applies to it...
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| Answer by: Rambabu Senkarasetti |
| Yes, it applies
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| Comments |
| Posted By : Mrattunjay |
12-Feb-2012, 04:32:49 |
| obiously applies for the same, |
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| Posted By : Lavina Bajaj |
17-Jan-2012, 12:51:13 |
| (1) No company limited by shares, and no company limited by guarantee and having a share capital, shall have power to buy its own shares, unless the consequent reduction of capital is effected and sanctioned in pursuance of sections 100 to 104 or of section 402.
77A. Power of company to purchase its own securities.—(1) Notwithstanding anything contained in this Act, but subject to the provisions of sub-section (2) of this section and section 77B, a company may purchase its own shares or other specified securities (hereinafter referred to as “buy-back”) out of—
a. its free reserves.
b. its securities prem.
c. the proceeds of any share or any other speciifed securities. |
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