Document ID: chunk:federal_register_of_legislation:C2025C00185:section:254k
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 254K
Character Range: 873331–873852

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 1: For a director's duty to prevent insolvent trading on redeeming redeemable preference shares, see section 588G.
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.