New RBI Grade B Notification Coming Soon... Prepare with Us!! Click here to enroll

    Register

    Question

    State which of the following statements is true?

    A Buy-back is for more than twenty-five per cent of the total paid-up capital and free reserves of the company. Correct Answer Incorrect Answer
    B Partly paid shares cannot be bought back by a company. Correct Answer Incorrect Answer
    C Buy-back of equity shares in any financial year shall exceed twenty-five per cent of its total paid-up equity capital in that financial year. Correct Answer Incorrect Answer
    D Partly paid shares can be bought back by a company. Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Partly paid shares refer to shares for which the shareholder has paid only a portion of the total amount due on the shares. According to company law in many jurisdictions, including India, companies are generally not permitted to buy back partly paid shares.

    Practice Next
    ×
    ×