Ordlista
/

Redemption of shares

Redemption of shares

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

What is redemption of shares?

Redemption of shares means a limited company redeems certain shares and repays the shareholder. It is often used to return capital to owners or to buy out a part-owner.

 

Redemption and share capital

Redemption often happens through cancellation of shares and then means a reduction of share capital. The decision is made by the general meeting and recorded as a share ledger event.

Get help with complex transactions
Henrik Kristensen, NVR
Behöver du hjälp att komma igång med aktieboken? Vi hjälper dig!

Related terms

Redemption clause

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

Cancellation of shares

Cancellation of shares means that shares are withdrawn and cease to exist, often to reduce share capital.

Reduction of share capital

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