Section 70 Of The Companies Act 2013
Updated: Oct 14
What is Section 70 of the Companies Act 2013?
[Prohibitons of Buyback of Shares in Certain Circumstances.]
Effective from 12-09-2013, fonts in green from 01.04.2014
(1) No company shall directly or indirectly purchase its own shares or other specified securities — (a) through any subsidiary company including its own subsidiary companies; (b) through any investment company or group of investment companies; or (c) if a default, is made by the company, in the repayment of deposit accepted either before or after the commencement of this Act, interest payment thereon, redemption of debenture or preference shares or payment of dividend to any shareholder, or repayment of any term loan or interest payable thereon to any financial institution , or banking company : Provided that the buy-back is not prohibited, if the default is remedied and a period of three years has lapsed after such default ceased to subsist. (2) No company shall, directly or indirectly, purchase its own shares or other specified securities in case such company has not complied with the provisions of section 92, section 123, section 127 and section 129.(Effective from 01-04-2014)