The redemption amount (Swedish: lösenbelopp) is the compensation a shareholder receives when their shares are redeemed. It may concern a redemption of shares under a redemption clause, a buyback under a pre-emption clause or a compulsory redemption of the minority.
Under a clause, the basis is often set out in the articles of association. In a compulsory redemption, the amount should as a rule reflect market value, and disputes are settled by arbitrators. Once shares are redeemed, the change must be entered in the share ledger.
Redemption of shares means the company redeems and repays certain shares to the owner.
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A redemption clause is a provision in the articles of association that allows shares to be redeemed.
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Compulsory redemption means an owner with more than 90 percent of the shares can buy out the minority.
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A pre-emption clause gives existing shareholders the right to buy back shares that have passed to a new owner.
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