COMPANIES ACT - 1963 (ACT 179)

    Section - 60 - Redemption of Redeemable Preference Shares

    (1) Notwithstanding any provision in the Regulations, a company shall not redeem any of its redeemable preference shares except,

    (a) out of a credit balance on the share deals account referred to in section 63 of this Code or out of transfers to that account in the manner referred to in that section from income surplus as defined in section 70 of this Code; or

    (b) out of the proceeds of a fresh issue of shares made for the purposes of the redemption not more than twelve months before the date of redemption.

    (2) If any redeemable preference shares have become redeemable in accordance with the provisions of the Regulations and the funds of the company are sufficient to entitle it, under subsection (1) of this section, to redeem the whole of the shares due for redemption, the holder of any such shares may serve notice on the company requiring it to effect the redemption in accordance with the Regulations.

    (3) If the company shall fail to redeem such shares within twenty-eight days of the service of the notice, the shareholder who has served the notice may apply to the Court on behalf of himself and all other shareholders whose shares are due for redemption; and the Court, if satisfied that the conditions of this subsection are fulfilled, may order the company to redeem the shares and may require the company and any officer of the company who is in default to bear all the costs of, and incidental to, the application.

    (4) The provisions of section 324 of this Code shall apply to any application to the Court under subsection (3) of this section.