Multiple choice

Facility of buy-back of shares is allowed in which of the following cases?

  1. Buy-back of shares is through any subsidiary company including its own subsidiary company.

  2. Buy-back of shares is through any investment company or a group of investment companies.

  3. Buy-back is by purchasing the securities issued to employees of the company.

  4. The company has defaulted in repayment of preference shares.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 The buy-back can be made by purchasing the securities issued to existing employees of the company. So the facility of buy-back of shares is allowed when the company intends to purchase its own shares from its employees.

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