Issue of fresh equity shares in case of buy back made 4 months ago by company

By | November 10, 2015
(Last Updated On: November 10, 2015)

Can a company issue fresh equity shares if the company has made buy back of the same 4 months ago?

Answer: According to Section 68(8) of Companies Act 2013, if a company completes buy back of its shares or other specified securities, it shall not make a further issue of the same kind of shares or other securities including allotment of new shares under clause (a) of sub – sec.(1) of sec.62 or other specified section within a period of 6 months except by way of a bonus issue, conversion of warrant, stock option schemes, sweat equity, conversion of preference shares or debenture into equity shares.

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