When a Company Redeems Preference Shares

When a company redeems preference shares:

A) It must ensure it has sufficient cash reserves to do so.
B) It must do so out of profits other than those available for the issuing of dividends.
C) It must issue fresh shares to fund the redemption.
D) It must create a capital redemption reserve that needs to be maintained separately to share capital.
E) None of the given answers