Company Law

Restrictions on purchase by the Co or giving of loans by it for purchase of its shares [S. 67]

A Private Co is exempted from the provisions of S. 67 if following conditions are fulfilled:

  1. No other body corporate has invested any money in its share capital;
  2. Borrowing from banks, FIs or anybody corporate is < (2 * its paid-up capital) or ₹ 500 million, whichever is lower; and
  3. It has not defaulted in repayment of such borrowings at the time of purchase of own shares.