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 – Guidance Notes.”

What these board resolutions are for

Use these resolutions where a private company is redeeming redeemable shares, and the redemption is funded from distributable profits or the proceeds of a new issue of shares.

Choices you will need to reflect in the resolutions

• Whether the shares are being redeemed at the option of the company or at the option of the holder of the redeemable shares.
• Whether the redemption is funded out of distributable profits or out of the proceeds of a new issue of shares.

Certain provisions will need to be adjusted depending on those choices.

Points to address if the company has one director

If the company has only one director, certain provisions may be removed, including references to “the chairman”.

Company secretary references

If the company does not have a company secretary, references to the “Company Secretary” should be deleted and replaced with the name of the director responsible for secretarial duties.

New issue of shares funding

If the redemption is to be made out of the proceeds of a new issue of shares, the relevant provision should be retained and the required details completed.

Redemption Out Of Profits/New Share Issue – Board Resolutions is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.