Part 18Acquisition by limited company of its own shares

Chapter 3Redeemable shares

686Payment for redeemable shares

(1)

Redeemable shares in a limited company may not be redeemed unless they are fully paid.

(2)

The terms of redemption of shares in a limited company may provide that the amount payable on redemption may, by agreement between the company and the holder of the shares, be paid on a date later than the redemption date.

(3)

Unless redeemed in accordance with a provision authorised by subsection (2), the shares must be paid for on redemption.