XYZ's unlisted company passed a special resolution in a general meeting on January 5th, 2019 to buy back 30% of its equity shares. The Articles of Association empower the company to buy back its own es. Earlier the company also passed a special resolution to buy back its own es on January 15th, 2018. The company further decided that the payment for buyback be made out of the proceeds of the company’s earlier issue of equity shares. In light of the provisions of the Companies Act, 2013,

(i) Decide, whether the company’s proposal is in order.

(ii) What will be your answer if the buyback offer date is revised from January 5th, 2019 to January 25th, 2019, and the percentage of the buyback is reduced from 30% to 25% keeping the source of purchase as above?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below i In the instant case the companys prop... View the full answer