Section 74 — Companies Act 1993: Redemption at option of shareholder

74 Redemption at option of shareholder (1) Subject to this section, if a share is redeemable at the option of the holder of the share, and the holder gives proper notice to the company requiring the company to redeem the share,— (a) The company must redeem the share on the date specified in the notice, or if no date is specified, on the date of receipt of the notice; and (b) The share is deemed to be cancelled on the date of redemption; and (c) From the date of redemption the former shareholder ranks as an unsecured creditor of the company for the consideration payable on redemption. (2) A redemption under this section— (a) Is not a distribution for the purposes of sections 52 and 53 of this Act; but (b) Is deemed to be a distribution for the purposes of subsections (1) and (5) of section 56 of this Act. Subsection (1)(c) was amended, as from 15 April 2004, by section 4 Companies Amendment Act (No 2) 2004 (2004 No 24) by substituting the word “ consideration ” for the word “ sum ” .