Question

Every buy-back of shares should be completed within ______ months of passing the special resolution.

• A. $12$
• B. $6$
• C. $8$
• D. $18$

Answer 1

The correct option is A $12$

Section 68, 69, and 70 of The Companies Act, 2013 along with Rule 17 of The Companies (Share Capital and Debentures) Rules, 2014, governs the procedure of Buy-Back of shares and other specified securities.

According to which, the buy back Formalities should be completed within 12 months from the date of passing the board resolution or special resolution as applicable. If buy-back is not completed within 12 months as aforesaid, the reasons therefor will have to be stated in the Directors Report.