THE CORPORATIONS LAW

CHAPTER 2H - SHARES

PART 2H.2 - REDEMPTION OF REDEEMABLE PREFERENCE SHARES

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

254J(1)  [Redemption]  

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

Note:

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

254J(2)  [Reduction of capital or share buy-back]  

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.