Buyback of Shares Questions and Answers:
__ companies are permitted to buy back its shares
(a) Insolvent
(b) Solvent
(c) Both (a) & (b)
(d) None of the above
With in 30 days of completion of buy back company shall file the details with whom_____
(a) Registrar
(b) SEBI
Which of the following can be used for buy back of shares
(a) Free reserves
(b) Securities premium
(c) Proceeds of fresh issue of shares
(d) All of the above
Buy back securities should be physically destroyed with in ____ days
(a) 7
(b) 17
(c) 21
(d) 28
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After buy back company can’t issue the same kind of shares for __ months
(a) 6
(b) 12
(c) 18
(d) 24
In case of company opting for buy back of own shares. It should pass resolutions through postal ballot
(a) Yes
(b) No
If buy back is made from free resources then what should be created___
(a) Debenture Redemption Reserve
(b) Capital Redemption Reserve
(c) Statutory liquid Ratio
(d) None of the above
Related: Contracts multiple choice questions and answers
Every buy back shall be completed with in___ month from the date of passing the S.R.
(a) 6
(b) 8
(c) 10
(d) 12
Buy back by board resolution can only be upto_____
(a) 15
(b) 10
(c) 25
(d) 20
In case of buy back debt equity ratio should be____
(a) 1 : 2
(b) 2 : 1
(c) 3 : 1
(d) 1 : 3
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Under the scheme of buyback of shares , the company in order to perform its obligations , is required to open an ….account
(a) fixed deposit
(b) escrow deposit
(c) savings deposit
(d) current deposit
Buy back should be less than or equal to ___ % of total paid up capital
(a) 25
(b) 30
(c) 35
(d) 40