Section 70 — Prohibition for buy-back in certain circumstances
(1) No company shall directly or indirectly
purchase its own shares or other specified securities—
(a) through any subsidiary company including its own subsidiary companies;
(b) through any investment company or group of investment companies; or
(c) if a default, is made by the company, in the repayment of deposits accepted either before or after
the commencement of this Act, interest payment thereon, redemption of debentures or preference shares
or payment of dividend to any shareholder, or re payment of any term loan or interest payable thereon
to any financial institution or banking company:
Provided that the buy-back is not prohibited, if the default is remedied and a period of three years
has lapsed after such default ceased to subsist.
(2) No company shall, directly or indirectly, purchase its own shares or other specified securities in
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 69 — Transfer of certain sums to capital redemption reserve account
- Section 71 — Debentures
- Section 72 — Power to nominate