Company Law Review Act 1998 (61 of 1998)
Schedule 5
Corporations Law
12 Section 254K
Repeal the section, substitute:
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.
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