Corporations Act 2001

CHAPTER 2H - SHARES  

PART 2H.2 - REDEMPTION OF REDEEMABLE PREFERENCE SHARES  

Note: This Part does not apply to a CCIV: see section 1230D .

SECTION 254K  

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 .