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The Companies Act, 1956

Prospectus and Allotment and Other Matters Relating to Issue of Shares or Debentures (55 to 81)

Section 77AA- Transfer of certain sums to capital redmeption reserve account

Section 77AA- Transfer of certain sums to capital redmeption reserve account.

[Note: This section stands repealed pursuant to notification of its corresponding sections under the Companies Act, 2013 vide notification dated 12.09.2013]

Where a company purchases its own shares out of free reserves, then a sum equal to the nominal value of the share so purchased shall be transferred to the capital redemption reserve account referred to in clause (d) of the proviso to sub-section (1) of section 80 and details of such transfer shall be disclosed in the balance-sheet.