Question
As per the Companies Act, 2013, where a company
buy-backs its own shares or other specified securities, it shall extinguish and physically destroy the share certificates so bought back within ________ of the last date of completion of buy-back.Solution
Section 68(7) of Companies Act, 2013 states: Where a company buys back its own shares or other specified securities, it shall extinguish and physically destroy the shares or securities so bought back within seven days of the last date of completion of buy-back. This ensures that capital is reduced immediately to prevent the recycling of shares in the secondary market.
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