Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 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: For a director's duty
to prevent insolvent trading on redeeming redeemable preference shares, see
section 588G.