Redemption of shares

66. For the purposes of this Act, a share is redeemable if the articles of the company make provision for the redemption of that share by the company —

(a) at the option of the company;

(b) at the option of the holder of the share; or

(c) on a date specified in the articles, for a consideration that is specified or to be calculated by reference to a formula or required to be fixed by a suitably qualified person who is not associated with or interested in the company.

67. (1) A company may exercise an option to redeem a share which is redeemable at the option of the company, if the board has previously resolved that the redemption is in the interest of the company.

(2) A redemption of a share at the option of the company is deemed to be—

(a) an acquisition by the company of the share, for the purposes of subsection (3) of section 64; and

(b) a distribution for the pruposes of seciton 56.  

68. (1) Where a share is redeemable at the option of the holder of the share and the holder gives proper notice to the company requiring the company to redeem the share—

(a) the company shall redeem the share on the date specified in the notice or if no date is specified, on the date of receipt of the notice;

(b) the share is deemed to be cancelled on the date of redemption; and

(c) from the date of redemption, the former shareholder ranks as an unsecured creditor of the company for the sum payable on redemption.

(2) A redemption under this section is not a distribution for the purposes of section 56, but is deemed to be a distribution for the purposes of subsection (1) and subsection

(3) of section 61.

 69. (1) Where a share is redeemable on a specified date—

(a) the company shall redeem the share on that date;

(b) the share is deemed to be cancelled on that date;

and

(c) from that date, the former shareholder ranks as an unsecured creditor of the company for the sum payable on redemption.

(2) A redemption under this section is not a distribution for the purposes of section 56, but is deemed to be a distribution for the purposes of subsection (1) and subsection

(3) of section 61.