Letter To Companies House - Redemption Of Shares CO.RE.04
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This Letter to Companies House – Redemption of Shares is to be used as a cover letter for filing the relevant Special Resolution with Companies House. A copy of the Special Resolution must be sent to the Registrar of Companies within 15 days of it being passed.
A private company can redeem redeemable shares using either distributable profits, the proceeds of a fresh/new issue of shares or in specific circumstances capital.
A limited company can issue shares which are to be redeemed or liable to be redeemed at the option of the company. Redeemable shares give the shareholder temporary membership in the company since shares issued as redeemable shares have the rights to be bought back (redeemed) by the company at a future date.
A company can only issue redeemable shares if the articles of association provide for it. Also, all the details of the redemption, including the date of redemption and the price to be paid for the shares at that date, will be contained in the articles.
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