Skip to content

CS Executive · Corporate Accounting and Financial Management · Related Aspects of Company Accounts

Under the Companies Act, 2013, within how many days of the last date of completion of a buy-back must a company extinguish and physically destroy the shares bought back?

A company must extinguish and physically destroy the shares or securities bought back within seven days of the last date of completion of the buy-back. The thirty-day period relates to filing the return with the Registrar, not to destruction of the securities.

  1. ASeven daysCorrect
  2. BThirty days
  3. CFifteen days
  4. DNinety days

Explanation

Section 68(7) requires the company to extinguish and physically destroy the bought-back shares or securities within seven days of the last date of completion of the buy-back. Thirty days is the period for filing the return with the Registrar, so it is a different requirement.

Did you get it right without looking?

One question tells you little. A timed set on Related Aspects of Company Accounts shows your real accuracy, how long you take and where you lose marks.

Practise Related Aspects of Company AccountsFree diagnostic mock

More Related Aspects of Company Accounts questions