Cap. 168 ст. 100Redeemable preference shares.

(1) Where a company, duly authorised by its memorandum or articles, issues preference shares which are, or at the option of the company are to be liable, to be redeemed -

(a) no such shares shall be redeemed except out of the profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purpose of the redemption;

(b) no such shares shall be redeemed unless they are fully paid;

(c) the premium, if any, payable on redemption must have been provided for out of the profits of the company or out of the company’s share premium account before the shares are redeemed;

(d) where any such shares are redeemed otherwise than out of the proceeds of a fresh issue, there shall, out of profits which would otherwise have been available for dividend, be transferred to a reserve fund to be called "the capital redemption reserve fund", a sum equal to the nominal amount of the shares redeemed, and the provisions of this Ordinance relating to the reduction of the share capital of a company shall, except as provided in this article, apply as if the capital redemption reserve fund were paid up share capital of the company.

(2) The capital redemption reserve fund may, notwithstanding anything in this article, be applied by the company in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares.