Question

Section 43 of the Companies Act, 2013 provides for ...........

• A. Buy Back of Shares
• B. Reduction in Share Capital
• C. Issue of Shares at Premium
• D. Kinds of Share Capital

Hint:

Remember: Section 43 of the Companies Act, 2013 defines two kinds of share capital — equity and preference shares.

Answer 1

The Correct Option is D

Step 1: Understanding Section 43 of the Companies Act, 2013.
Section 43 defines the classification of share capital in a company limited by shares. It specifies two main kinds of share capital: 1. Equity share capital — with or without voting rights.
2. Preference share capital — which has preferential rights regarding dividends or repayment.
Step 2: Analysis of options.
(A) Incorrect — Buy-back of shares is covered under Section 68.
(B) Incorrect — Reduction of share capital is covered under Section 66.
(C) Incorrect — Issue of shares at premium is dealt with in Section 52.
(D) Correct — Section 43 deals with the kinds of share capital.
Step 3: Conclusion.
Hence, the correct answer is (D) — Section 43 provides for kinds of share capital in a company.