254J

Redemption must be in accordance with terms of issue

In force

(1)

A company may redeem redeemable preference shares only on the terms on which they are on issue. On redemption, the shares are cancelled.

Note 1:

For the power to issue redeemable preference shares see paragraph 254A(1)(b) and subsections 254A(2) and (3).

Note 2:

For the criminal liability of a person dishonestly involved in a contravention of this section, see subsection 254L(3). Section 79 defines involved.

(2)

This section does not affect the terms on which redeemable preference shares may be cancelled under a reduction of capital or a share buy‑back under Part 2J.1.

This Act’s bill:Explanatory memorandum Second reading speech

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