Comparison View

Formal Consolidation |  2006 RevEd
Redeemable preference shares
70.—(1)  Subject to this section, a company having a share capital may, if so authorised by its articles, issue preference shares which are, or at the option of the company are to be, liable to be redeemed and the redemption shall be effected only on such terms and in such manner as is provided by the articles.
(2)  The redemption shall not be taken as reducing the amount of share capital of the company.
[21/2005]
(3)  The shares shall not be redeemed unless they are fully paid up.
[21/2005]
(4)  The shares shall not be redeemed out of the capital of the company unless —
(a)all the directors have made a solvency statement in relation to such redemption; and
(b)the company has lodged a copy of the statement with the Registrar.
[21/2005]
(5)  [Act 21 of 2005]
(6)  [Act 21 of 2005]
(7)  [Act 21 of 2005]
(8)  If a company redeems any redeemable preference shares it shall within 14 days after so doing give notice thereof to the Registrar specifying the shares redeemed.
[UK, 1948, s. 58; Aust., 1961, s. 61]
Informal Consolidation | Amended Act 36 of 2014
Redeemable preference shares
70.—(1)  Subject to this section, a company having a share capital may, if so authorised by its constitution, issue preference shares which are, or at the option of the company are to be, liable to be redeemed and the redemption shall be effected only on such terms and in such manner as is provided by the constitution.
[Act 36 of 2014 wef 03/01/2016]
(2)  [Deleted by Act 36 of 2014 wef 01/07/2015]
(3)  The shares shall not be redeemed unless they are fully paid up.
[21/2005]
(4)  The shares shall not be redeemed out of the capital of the company unless —
(a)all the directors have made a solvency statement in relation to such redemption; and
(b)the company has lodged a copy of the statement with the Registrar.
[21/2005]
(5)  For the avoidance of doubt, shares redeemed out of proceeds of a fresh issue of shares issued for the purpose of redemption shall not be treated as having been redeemed out of the capital of the company.
[Act 36 of 2014 wef 03/01/2016]
(6)  A private company may redeem any redeemable preference shares by lodging a prescribed notice of redemption with the Registrar.
[Act 36 of 2014 wef 03/01/2016]
(7)  A redemption of any redeemable preference shares by a private company on or after the date of commencement of section 36 of the Companies (Amendment) Act 2014 does not take effect until the electronic register of members of the company is updated by the Registrar under section 196A(5).
[Act 36 of 2014 wef 03/01/2016]
(8)  If a public company redeems any redeemable preference shares, it shall within 14 days after doing so give notice thereof to the Registrar specifying the shares redeemed.
[Act 36 of 2014 wef 03/01/2016]