What is the distinction between redeemable and non-redeemable shares?
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When an investor buys a share he pays money for the share. A non-redeemable share is one where, once the money is paid, it is never paid back. A redeemable share is one where the money is paid back at some future date. Generally, when people buy shares they do not expect to get the money they paid for the share paid back to them. They expect to earn profits from the shares. However, there are special types of share (for example, types of preference share) that are issued on the express understanding that they money will be paid back at some future date.
1 Limited Liability Companies, Companies Act (1985)
2 Articles of Memorandum of Association
3 Company Book, Applications, Allotments, Members, Transfers
4 Why do investors require a statement of the purposes of the Company?
5 What does the phrase "without prejudice" mean in the following sentence
6 What is the distinction between redeemable and non-redeemable shares?
7 What is a special resolution?
8 Why is it normal to include a statement of the number of unissued shares of the Company in the Balan
16 Other Types of Business
17 Sole trader
19 What are the advantages of being a sole trader as opposed to forming a limited liability company?
20 Why do most business people prefer to buy shares in a limited liability company rather than work as
21 What are the differences between a partnership and a private limited company?
22 What are the differences between a private and a public limited company?
23 If you are entering into a partnership and intend to take more than 50% of the profits why do you ne