Ordlista
/

Redemption clause

Redemption clause

A redemption clause is a provision in the articles of association that allows shares to be redeemed.

What is a redemption clause?

A redemption clause (Swedish: inlösenförbehåll) is a clause in the articles of association allowing the company to redeem shares through a reduction of share capital. It sets out which shares can be redeemed and how the redemption amount is determined.

 

A redemption clause and the share ledger

It must be noted in the share ledger for the shares covered. After a redemption of shares, the shares cease to exist and are removed from the ledger. Like a pre-emption clause, it is a restriction that affects the rights attached to a share.

Record events in the share ledger
Henrik Kristensen, NVR
Behöver du hjälp att komma igång med aktieboken? Vi hjälper dig!

Related terms

Redemption of shares

Redemption of shares means the company redeems and repays certain shares to the owner.

Cancellation of shares

Cancellation of shares means that shares are withdrawn and cease to exist, often to reduce share capital.

Transfer restriction

A transfer restriction is a condition in the articles of association that limits how shares may be transferred.

Reduction of share capital

A reduction of share capital means a limited company lowers its registered share capital.