Question

As per section $68$ of the Companies Act, $2013$ a company can buy back its shares or securities out of ___________.

• A. Its free reserves
• B. Securities premium A/c
• C. Proceeds of any shares or other specified securities
• D. Any of the above

Answer 1

Answer: (D)

Any of the above

Section 68 of the Companies Act,2013 permits a company, both private and public to buy back its shares or other specified securities in accordance with the conditions prescribed under Section 68 which are as follows:-

A company may purchase its own shares or other specified securities out of—

1) its free reserves;

2) the securities premium account; or

3) the proceeds of the issue of any shares or others specified securities.