| Commentary

130 Redeemable shares

| Commentary

130 Redeemable shares

Subject to the provisions of the Companies Act 2006 Sections 684 to 689, a private limited company having a share capital may issue shares that are to be redeemed or are liable to be redeemed at the option of the company or the shareholder (‘redeemable shares’), unless this power is excluded or restricted in its articles1. A public limited company cannot issue redeemable shares unless its articles give it authority to do so2.

Other provisions of the 2006 Act are designed to ensure that the whole share capital of the company does not become redeemable. Thus, no redeemable

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