Section 69 — Transfer of certain sums to capital redemption reserve account
(1) Where a company
purchases its own shares out of free reserves or securities premium account, a sum equal to the no minal
1. The words “with imprisonment for a term which may extend to three years or” omitted by Act 29 of 2020, s. 14 (w.e.f. 21-12-
2020).
2. Subs. by s. 14, ibid., for “three lakh rupees, or with both” (w.e.f. 21-12-2020).
value of the shares so purchased shall be transferred to the capital redemption reserve account and details
of such transfer shall be disclosed in the balance sheet.
(2) The capital redemption reserve account may be applied by the company, in paying up unissued
Related sections
- Section 43 — Kinds of share capital
- Section 44 — Nature of shares or debentures
- Section 45 — Numbering of shares
- Section 46 — Certificate of shares
- Section 47 — Voting rights
- Section 48 — Variations of shareholders’ rights
- Section 49 — Calls on shares of same class to be made on uniform basis
- Section 50 — Company to accept unpaid share capital, although not called up
- Section 51 — Payment of dividend in proportion to amount paid-up
- Section 52 — Application of premiums received on issue of shares
- Section 53 — Prohibition on issue of shares at discount
- Section 54 — Issue of sweat equity shares
- Section 55 — Issue and redemption of preference shares
- Section 57 — Punishment for personation of shareholder
- Section 58 — Refusal of registration and appeal against refusal
- Section 59 — Rectification of register of members
- Section 60 — Publication of authorised, subscribed and paid -up capital
- Section 61 — Power of limited company to alter its share capital
- Section 62 — Further issue of share capital
- Section 63 — Issue of bonus shares
- Section 64 — Notice to be given to Registrar for alteration of share capital
- Section 65 — Unlimited company to provide for reserve share capital on conversion into limited
- Section 66 — Reduction of share capital
- Section 67 — Restriction on purchase by company or giving of loans by it for purchase of its shares
- Section 68 — Power of company to purchase its own securities
- Section 70 — Prohibition for buy-back in certain circumstances
- Section 71 — Debentures
- Section 72 — Power to nominate