| Commentary

14.6 Right of redemption

| Commentary

14.6 Right of redemption

The company’s right to redeem debentures1 early should always be considered. Notice will be required and it is suggested that, if only some of the debentures issued are to be redeemed, the company should adopt some form of selection on an equitable basis. If the debentures are convertible, then the deed should ensure that the debenture holders are properly compensated if the right to redeem gives the ability of the company to exclude the right to convert the debenture into shares2.

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