CUET Accountancy - A company can buy its own shares when- | PYQs + Solutions

CUET Accountancy 2023 29 May Shift 2

Company Accounts

Medium

The debt - Equity ratio is not more than 1:1 after the buy back.

The amount of buy back shares in any financial year not exceeding 20% of the paid-up capital and free reserves.

Partly paid up shares are considered buy back.

Article of Association must authorise and special resolution has been passed for the buy back of shares.

✅ Correct Option: 4

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CUET Accountancy 2023 29 May Shift 2 PYQs

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