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of <h1>Companies Act Section 77A: Guidelines for Share Buy-Back, Including Limits and Compliance Requirements</h1> Section 77A of the Companies Act, 1956 allows a company to buy back its own shares or specified securities using free reserves, securities premium account, or proceeds from other securities, excluding proceeds from the same kind of securities. The buy-back must be authorized by the company's articles and approved by a special resolution or board resolution for smaller buy-backs. It is limited to 25% of the company's paid-up capital and free reserves, and the debt-equity ratio should not exceed 2:1. Securities must be fully paid-up and comply with regulatory guidelines. The buy-back must be completed within 12 months, and securities must be destroyed within seven days post-completion. The company must file a solvency declaration and maintain a buy-back register. Non-compliance may result in penalties.
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