Corporations Act 2001

CHAPTER 2H - SHARES  

PART 2H.2 - REDEMPTION OF REDEEMABLE PREFERENCE SHARES  

Note: This Part does not apply to a CCIV: see section 1230D .

SECTION 254J   REDEMPTION MUST BE IN ACCORDANCE WITH TERMS OF ISSUE  

254J(1)    
A company may redeem redeemable preference shares only on the terms on which they are on issue. On redemption, the shares are cancelled.

Note 1: For the power to issue redeemable preference shares see paragraph 254A(1)(b) and subsections 254A(2) and (3) .

Note 2: For the criminal liability of a person dishonestly involved in a contravention of this section, see subsection 254L(3) . Section 79 defines involved .

254J(2)    
This section does not affect the terms on which redeemable preference shares may be cancelled under a reduction of capital or a share buy-back under Part 2J.1 .