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CA Intermediate · Advanced Accounting · Buyback of Securities

Pioneer Textiles Ltd completed a buyback offer on 10 August 2025. Under the Companies Act, 2013, what is the earliest the company can make a further buyback offer?

The company can make the next buyback offer only after one year from the closure of the preceding offer. The Companies Act, 2013 prescribes this cooling-off period, and a fresh shareholder resolution cannot shorten it.

  1. AImmediately, if shareholders pass a fresh special resolution
  2. BAfter six months from the closure of the preceding offer
  3. CAfter one year from the closure of the preceding offerCorrect
  4. DAfter three years from the closure of the preceding offer

Explanation

The Act bars a further offer of buyback within one year from the date of closure of the preceding offer. A fresh special resolution does not remove this gap. Six months and three years are not the statutory periods.

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