A) In a de-listing offer, if the public have not responded in full, the left-out shares need not be acquired at all if the promoters’ holding has already reached 90%

A) In a de-listing offer, if the public have not responded in full, the left-out shares need not be acquired at all if the promoters’ holding has already reached 90%.

(a) Yes     (b) No

B) In a share buyback, the company cannot be de-listed if the public shareholding falls below the statutory minimum even if the share buyback regulations have been complied with.

(a) Yes    (b) No

C) A company has a debt-equity ratio of 1.5:1. It is now considering an equity buyback such that the residual debt-equity ratio is not more than 2:1. For this purpose, the company considers transfer of a long-term liability to the current liability category in consultation with the auditors. The auditors object to this step stating that it is not in compliance with accounting principles. The company maintains that compliance with statutory provisions takes precedence over accounting principles. Who is right?

(a) Company    (b) Auditors