xs
This website uses cookies to ensure you get the best experience on our website. Learn more

#14696 - Redemption Of Shares - Business Law and Practice

Notice: PDF Preview
The following is a more accessible plain text extract of the PDF sample above, taken from our Business Law and Practice Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting.
See Original

Redemption of Shares

Redeemable Shares

Redeemable shares are shares which are issued which entitle the company to redeem them at the option of the company according to a formula or price that is predetermined.

All the rights of redeemable shares are set out in the Articles of the company at the time of issue (s.685(3)). The Articles must not prohibit or restrict the issue or redemption of redeemable shares (s.684(2))

Funding a Redemption

Shares can be redeemed using one of the following funding methods:

Capital (s.678(1)) which is the amount invested by the shareholders that cannot be distributed to protect creditors. There are additional restrictions on redeeming shares using capital.

Distributable profits (s.687(2)(a)) are the working profits of the company with all of the losses deducted off the profits.

Fresh issue of shares (s.687(2)(b)) can be used to fund the redemption of shares as long as the new shares were issued for the sole purpose of funding the redemption.

The funding of the redemption must first be done using the distributable profits. If more money is required then capital can be used to fund the rest of the redemption.

Procedure Plans

Procedure Plan for the Redemption of Shares using Distributable Profits or a Fresh Issue of Shares
Procedure Plan for the Redemption of Shares using Capital
BOARD MEETING 1 GENERAL MEETING BOARD MEETING 2

The Articles must not prohibit the redemption of shares (s.684(2)).

Board resolution to use distributable profits or a fresh issue to fund the redemption (s.684(1) & s.687(2)(a)/(b)).

Post Meeting Matters:

  • Notification must be sent to Companies House within 1 month with a statement of capital (s.689(1)-(2))

  • Amend the Register of Members; cancel and reissue share certificates (s.688)
BOARD MEETING 1 GENERAL MEETING BOARD MEETING 2

The Articles must not prohibit the redemption of shares (s.684(2)) or the use of capital (s.709(1)).

A directors statement and auditors report must be prepared (s.714) and be available to the shareholders for inspection at the registered office.

The DS & AR can either be sent with the written resolution and must be prepared not more than 1 week before the GM (s.716(2) & s.718(2)).

Call the general meeting and give notice in the usual way.

 Special...
Unlock the full document,
purchase it now!
Business Law and Practice
Premium study materials available for review
Business Law and Practice
A collection of the best LPC BLP notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results ...
495 purchased
Continue

More Business Law And Practice Samples

Administration And Cv As Notes Allotment Of Shares 1 Notes Allotment Of Shares Notes Alternatives To Liquidation Flow... Anti Money Laundering Notes Appointment And Removal Of Direc... Bankruptcy, Iv As, Dr Os Notes Board Meet General Meet Table ... Business Accounts Diagram Notes Business Accounts Notes Buy Back Crib Sheet Notes Buy Back Of Shares Consideratio... Buyback Of Shares Notes Buyback Of Shares Notes Buy Back Of Shares Procedure N... Challenging Antecedent Transacti... Change Of Name Notes Changing The Company Name Arti... Company Constitution Notes Company Decision Making Notes Company Decision Making Notes Company Directors Notes Company Insolvency Notes Company Names Notes Company Procedure Diagram Notes Company Procedure Notes Compatibility Of Articles With C... Compatibility Of Articles With C... Conduct Crib Sheet Notes Corporate Insolvency Notes Corporation Tax Notes Corporation Tax Notes Creating A Company Notes Debt Notes Directors Duties Crib Sheet Notes Directors' Duties Notes Directors' Duties Notes Directors Duties Explanatory Notes Director's Duties, Long Term Ser... Employment Crib Sheet Notes Employment Notes Equity Debt Finance Notes Equity Vs Debt Notes Financial Assistance Notes Formation Agreement 3rd Party ... Fourteen Liquidation Notes Fsma Notes General Revision Notes Incorporation & Registration Of ... Insolvency Crib Sheet Notes Insolvency Notes Insolvency I Notes Insolvency Ii Notes Insolvency Liability Of Direct... Introduction To Debt Finance Notes Issuing And Allotting Shares Notes Issuing Shares Notes Large Company Procedure Notes Ll Ps Notes Loans To Directors Notes Maintenance Of Share Capital Notes Minority Shareholders Notes Model Articles Table A Table N... Nature Of Partnerships Notes Partnership Act 1890 Notes Partnership Agreements Notes Partnership Crib Sheet Notes Partnerships – New, Retiring, Ex... Personal Insolvency Notes Personal Insolvency Notes Post Decision Requirements Notes Procedure Model Articles Notes Procedure Table A Articles Notes Professional Conduct In Blp Notes Recovery Of Assets Notes Redemption And Buyback Of Shares... Reduction Of Capital Crib Sheet ... Registration Of A Company Notes Removal Of A Director And Employ... Removal Of A Director Notes Removal Of Directors Notes Removing A Director & Service Co... Secured Loans Notes Selling The Company Notes Setting Up A Company Notes Shareholders Notes Shares Notes Shelf Company And Post Incorpora... Substantial Property Transaction... Taxation Crib Sheet Notes Taxation Of Individuals Notes Tax Notes Tax Notes Tests And Procedure For Insolven... Third Parties And Partnerships N... Transfer Of Shares 1 Notes Voidable Transactions Notes Ws1 Prep Task Notes
logo

Ambitious and intelligent students
choose Oxbridge Notes.

©2024 Oxbridge Notes. All right reserved.