Section Text
In section 77A of the Companies Act, 1956 (1 of 1956) (hereinafter referred to as the principal Act),
(a) In Sub-section (2), in clause (b), the following shall be inserted, namely:--
'Provided that nothing contained in this clause shall apply in any case where--
(A) The buy-back is or less than ten per cent, of the total paid-up equity capital and free reserves of the company; and
(B) Such buy-back has been authorised by the Board by means of a resolution passed at its meeting:
Provided further that no offer of buy-back shall be made within a period of three hundred and sixty-five days reckoned from the date of the preceding offer of buy-back, if any.
Explanation. --For the purposes of this clause, the expression "offer of buy-back" means the offer of such buy-back made in pursuance of the resolution of the Board referred to in the first proviso;';
(b) In sub-section (4), for the words "special resolution", the words "special resolution or a resolution passed by the Board" shall be substituted;
(c) In sub-section (6), after the words, brackets, letter and figure "special resolution under clause (b) of sub-section (2)", the words, brackets and letter "or the Board has passed a resolution under the first proviso to clause (b) of that subsection" shall be inserted;
(d) In Sub-section (8), for the words "within a period of twenty-four months", the words "within a period of six months" shall be substituted.