Redemption Out Of Profits/New Share Issue – Board Resolutions
These Redemption Out of Profits/New Share Issue – Board Resolutions are for
a private company wishing to redeem redeemable shares using either
distributable profits or the proceeds of a new issue of shares. They should
be read in conjunction with “Redemption Out of Profits/New Share Issue –
These Redemption Out of Profits/New Share Issue – Board Resolutions are in
open format. The document contains fields which must be completed. It also
contains wording options in square brackets which must be adjusted to suit
your purposes. If the company has only one director, then paragraphs 1 to 3
and paragraph 10 can be deleted together with references to “the chairman”.
Similarly, any references to the “Company Secretary” should be deleted if
the company does not have one and the field should be completed with the
name of the director responsible for secretarial duties.
Paragraphs 4, 5, and 6 (a) must be altered depending on whether the shares
are being redeemed at the option of the company or the holder of the
redeemable shares. Paragraph 6 (b) should only be used if the shares are
being redeemed at the option of the company.
Paragraphs 4, and 6 (a) should be further amended by choosing whether the
share purchase will be out of distributable profits or a new share issue
and deleting the inapplicable option.
If the purchase is to be made out of the proceeds of a new issue of shares,
then paragraph 8 should be retained and the fields completed.
Once you have subscribed to the appropriate document folder click on the
“Download Document” button below. You will be asked what you want to do
with the file. It is recommended that you save the document to a location
of your choice prior to viewing