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 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.

A redemption clause is a provision in the articles of association that allows shares to be redeemed.
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Cancellation of shares means that shares are withdrawn and cease to exist, often to reduce share capital.
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A reduction of share capital means a limited company lowers its registered share capital.
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