A company has 10,00,000 equity shares of ₹ 100 each. The company wants to buyback 1,00,000 equity shares from the market. For this:

CS Executive · Corporate and Management Accounting · PYQS · June 2024
A company has 10,00,000 equity shares of ₹ 100 each. The company wants to buyback 1,00,000 equity shares from the market. For this:
(A) Special resolution is required to be passed in the general meeting as the buyback is only 10% of the outstanding share capital
(B) Ordinary resolution is required to be passed in the board meeting as the buyback does not exceed 10% of the outstanding share capital
(C) No need to pass any resolution as the buyback is less than or equal to 10% of the outstanding equity share capital
(D) Ordinary resolution is required to be passed in the annual general meeting as the buyback is equal to 10% of the outstanding share capital

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Corporate Accounting

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