Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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 .
(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.