Section
70: Prohibition for Buy Back in certain circumstances:
1. Restriction on Buy Back:
•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 deposits accepted
either before or after the commencement of this Act, interest payment thereon,
redemption of debentures 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. Prohibitions:
•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:
•Sections
92: Annual Return
•Section
123: Declaration and Payment of Dividend
•Section
127: Failure to pay Dividend
•Section
129: Failure to give True and Fair Statement
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