GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A company can buy-back its own shares out of
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Free reserves
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Proceeds of any shares
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Securities premium account
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All of the above
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Explanation:
Detailed explanation-1: -Section 68 of the Companies Act, 2013 provides that no company shall purchase its own shares or other specified securities unless the following conditions are satisfied : (a) The share buy-back must be authorised by its articles.
Detailed explanation-2: -Procedure for Buy-Back of Shares Step 2: If the buy-back is 10% or less than the total paid-up equity capital of the company, the Board of Directors will approve the same by passing Board resolution without obtaining the member’s approval.
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