TheCorporations Act 2001 requires that where a company redeems preference shares it must do so out of profits that would otherwise be available for dividends or out of the proceeds of a fresh issue of shares made for the purpose of the redemption.

Question

Quizplus · Accepted Answer

The statement accurately reflects the requirement under the Corporations Act 2001 in regards to the redemption of preference shares.

TheCorporations Act 2001 Requires That Where a Company Redeems Preference