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69 Transfer of certain sums to Capital Redemption Reserve Account

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CHAPTER IV

Section 69 of Companies Act 2013

1.     Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal 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 non issued shares of the company to be issued to members of the company as fully paid bonus shares.

Short Notes:

  • This section came into force from September 12, 2013.
  • It seeks to provide that in case of buy-back of shares out of free reserves, a sum equal to the nominal value of the shares so purchased shall be transferred to capital redemption reserve account.
  • The said account may be applied in paying up non issued shares of the company to be issued to the members of the company as fully paid bonus shares.

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