| Commentary

202 Power of limited company to issue redeemable shares

| Commentary

3: REDEEMABLE SHARES

202 Power of limited company to issue redeemable shares

A private limited company 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’), subject to any exclusions or restrictions contained in its articles1. A public limited company may only issue redeemable shares if its articles expressly or impliedly authorise it to do so2. In either case, the company may not issue any redeemable shares at a time when it has no issued shares that are not redeemable3

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial