Income Tax Assessment (1997 Act) Regulations 2021

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 974 - Debt and equity interests  

Subdivision 974-F - Related concepts  

SECTION 974-135.02  

974-135.02   REDEEMABLE PREFERENCE SHARES  
For the purposes of paragraph 974-135(8)(a) of the Act, an obligation to redeem or buy back a preference share in relation to a company is not a contingent obligation merely because a requirement exists, under a law, to the effect that:

(a)    the redemption or buy back must not prejudice the company ' s ability to pay its creditors; or

(b)    the redemption or buy back must not cause the company ' s remaining assets to become insufficient to pay any of the company ' s debts for which provision for payment has not otherwise been made.




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