s 70 Redeemable preference shares
70.—(1) Subject to this section, a company having a share capital may, if so authorised by its constitution, issue preference shares which are, or at the option of the company are to be, liable to be redeemed and the redemption may be effected only on such terms and in such manner as is provided by the constitution.[36/2014] (2) [Deleted by Act 36 of 2014] (3) The shares must not be redeemed unless they are fully paid up. (4) The shares must not be redeemed out of the capital of the company unless —(a) all the directors have made a solvency statement in relation to such redemption; and (b) the company has lodged a copy of the statement with the Registrar. (5) To avoid doubt, shares redeemed out of proceeds of a fresh issue of shares issued for the purpose of redemption are not to be treated as having been redeemed out of the capital of the company.[36/2014] (6) A private company may redeem any redeemable preference shares by lodging a prescribed notice of redemption with the Registrar.[36/2014] (7) A redemption of any redeemable preference shares by a private company on or after 3 January 2016 does not take effect until the electronic register of members of the company is updated by the Registrar under section 196A(5).[36/2014] (8) If a public company redeems any redeemable preference shares, it must within 14 days after doing so give notice thereof to the Registrar specifying the shares redeemed.[36/2014]