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CS Executive · Capital Market and Securities Laws · Buy-Back of Securities

Shree Ganga Foods Ltd, a listed company, passes a special resolution on 1 July authorising a buy-back. Within what time must the buy-back be completed, and what must be filed with the Registrar and SEBI before making it?

The buy-back must be completed within one year of the special resolution. Before making it, the company must file with the Registrar and SEBI a declaration of solvency signed by at least two directors, one of whom is the managing director, if any, verified by an affidavit.

  1. AWithin six months; a copy of the notice of meeting
  2. BWithin one year of the resolution; a declaration of solvency signed by at least two directors, one being the managing director, if anyCorrect
  3. CWithin one year; a declaration of solvency signed by any one director
  4. DWithin two years; a return of buy-back

Explanation

Section 68(4) requires completion within one year from the date of the special resolution or Board resolution. Section 68(6) requires a declaration of solvency signed by at least two directors, one being the managing director if any, filed with the Registrar and SEBI. A single director's signature is not enough.

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