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Paid-up equity shares capital of ABC Ltd. is ₹50,00,000 having face value of ₹10 each fully paid-up. Other details: General Reserve = ₹15,00,000 Capital Redemption Reserve = ₹५,00,000 Profit & Loss Account = ₹1,00,000 Statutory reserve = ₹6,40,000 Securities Premium = ₹1,00,000 The board of directors passed resolution in board meeting to buy back maximum number of shares as allowed by law. Maximum No. of shares that can be brought back =?
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Paid-up equity shares capital of ABC Ltd. is ₹50,00,000 having face va...
Maximum Number of Shares that can be Bought Back:
To calculate the maximum number of shares that can be bought back by ABC Ltd., we need to consider the following regulations and guidelines:

Regulations and Guidelines:
- As per the Companies Act, 2013, a company can buy back its shares up to 25% or less of its total paid-up equity capital and free reserves.
- The total paid-up equity capital and free reserves of ABC Ltd. can be calculated by adding the paid-up equity shares capital, general reserve, capital redemption reserve, profit & loss account, statutory reserve, and securities premium.

Calculation:
- Total Paid-up Equity Capital and Free Reserves = ₹50,00,000 + ₹15,00,000 + ₹5,00,000 + ₹1,00,000 + ₹6,40,000 + ₹1,00,000
- Total Paid-up Equity Capital and Free Reserves = ₹78,40,000
- Maximum Number of Shares that can be Bought Back = 25% of Total Paid-up Equity Capital and Free Reserves
- Maximum Number of Shares that can be Bought Back = 0.25 * ₹78,40,000
- Maximum Number of Shares that can be Bought Back = ₹19,60,000
Therefore, ABC Ltd. can buy back a maximum of ₹19,60,000 worth of shares as allowed by law.
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Paid-up equity shares capital of ABC Ltd. is ₹50,00,000 having face value of ₹10 each fully paid-up. Other details: General Reserve = ₹15,00,000 Capital Redemption Reserve = ₹५,00,000 Profit & Loss Account = ₹1,00,000 Statutory reserve = ₹6,40,000 Securities Premium = ₹1,00,000 The board of directors passed resolution in board meeting to buy back maximum number of shares as allowed by law. Maximum No. of shares that can be brought back =?
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Paid-up equity shares capital of ABC Ltd. is ₹50,00,000 having face value of ₹10 each fully paid-up. Other details: General Reserve = ₹15,00,000 Capital Redemption Reserve = ₹५,00,000 Profit & Loss Account = ₹1,00,000 Statutory reserve = ₹6,40,000 Securities Premium = ₹1,00,000 The board of directors passed resolution in board meeting to buy back maximum number of shares as allowed by law. Maximum No. of shares that can be brought back =? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Paid-up equity shares capital of ABC Ltd. is ₹50,00,000 having face value of ₹10 each fully paid-up. Other details: General Reserve = ₹15,00,000 Capital Redemption Reserve = ₹५,00,000 Profit & Loss Account = ₹1,00,000 Statutory reserve = ₹6,40,000 Securities Premium = ₹1,00,000 The board of directors passed resolution in board meeting to buy back maximum number of shares as allowed by law. Maximum No. of shares that can be brought back =? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Paid-up equity shares capital of ABC Ltd. is ₹50,00,000 having face value of ₹10 each fully paid-up. Other details: General Reserve = ₹15,00,000 Capital Redemption Reserve = ₹५,00,000 Profit & Loss Account = ₹1,00,000 Statutory reserve = ₹6,40,000 Securities Premium = ₹1,00,000 The board of directors passed resolution in board meeting to buy back maximum number of shares as allowed by law. Maximum No. of shares that can be brought back =?.
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