Section 69 of Companies Act, 2013

69. Transfer of certain sums to capital redemption reserve account

(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.

Complete: companies-act-2013