It can act as a sanjeevinibooti, i.e. (1) no company shall directly or indirectly purchase its own shares or other specified securities — (a) through any. According to section 77a (1) of the companies act, 1956 a company may purchase its own shares or other specified securities (hereinafter referred to as.
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(a ) by way of a shareholders’ resolution passed in a general meeting;
In india, under section 77 of the companies act, 1956, no company had the power to buy its own shares unless it was by way of reduction of share capital.
It is regulated under the companies act, 1956/2013, and the income tax act, 1961. Or (b ) by way of a.
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