s 254K
In forceOther requirements about redemption
Volume 1Chapter 1, Part 1.1 to Chapter 2J, Part 2J.4 sections 1 to 260E
Chapter 2HShares
Part 2H.2Redemption of redeemable preference shares
254K Other requirements about redemption
A company may only redeem redeemable preference shares:
(a)
if the shares are fully paid‑up; and
(b)
out of profits or the proceeds of a new issue of shares made for the purpose of the redemption.
Note 1:
For a director’s duty to prevent insolvent trading on redeeming redeemable preference shares, see section 588G.
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.
Research tools for this sectionSubscription
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.