durand
Dec 19, 2010, 05:14 AM
In a private ltd company a permissible capital payment can be made to redeem or purchase its own shares when
a)it has insufficient distributable profits for the purpose
b)it can raise the amount from a new issue
c)it is not legally authorized to redeem them
d)all of the above
I believe the answer is “A” BECAUSE I KNOW THAT IT CAN BE REDEEM ITS OWN SHARE WHEN IT HAS UN DISTRIBUTABLE PROFITS BUT I AM STILL NOT SURE BECAUSE I THINK INSUFFICIENT DISTRIBUTABLE AND UN DISTRIBUTABLE HAVE SOME DIFFERENCE…can someone read and see if I'm correct thanks.
a)it has insufficient distributable profits for the purpose
b)it can raise the amount from a new issue
c)it is not legally authorized to redeem them
d)all of the above
I believe the answer is “A” BECAUSE I KNOW THAT IT CAN BE REDEEM ITS OWN SHARE WHEN IT HAS UN DISTRIBUTABLE PROFITS BUT I AM STILL NOT SURE BECAUSE I THINK INSUFFICIENT DISTRIBUTABLE AND UN DISTRIBUTABLE HAVE SOME DIFFERENCE…can someone read and see if I'm correct thanks.