Amended and updated notes on section 69 of Companies Act 2013. Detail discussion on provisions and rules related to transfer of certain sums to capital redemption reserve account.
Chapter IV (Sections 43–72) of the Companies Act, 2013 (CA 2013) deals with the provisions related to share capital and debentures. Section 69 of CA 2013 provides for transfer of certain sums to capital redemption reserve account.
Recently, we have discussed in detail section 68 (Power of company to purchase its own securities) of CA 2013. Today, we learn the provisions of section 69 of Companies Act 2013.
Section 69 of the Companies Act, 2013 has been notified by the Ministry of Corporate Affairs (MCA) vide Notification No. S.O. 2754(E) issued dated 12.09.2013. This notification was come into force from 12th September, 2013 i.e. the commencement date of section 69 is 12-9-2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | IV |
| Chapter Name | Share Capital and Debentures |
| Section No. | 69 |
| Section Name | Transfer of certain sums to capital redemption reserve account |
| Monthly Updated Edition | Company Law PDF |
Section 69 of Companies Act 2013: Transfer of certain sums to capital redemption reserve account
Section 69 shall come into force on 12th September, 2013 vide Notification No. S.O. 2754(E) dated 12.09.2013.
(1) Where a company purchases its own shares out of free reserves or securities premium account, a sum equal to the nominal value of the shares so purchased shall be transferred to the capital redemption reserve account and details of such transfer shall be disclosed in the balance sheet.
(2) The capital redemption reserve account may be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.