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Failure to redeem – payment defaults and redeemable preference shares
This article examines the legal issues surrounding Redeemable Preference Shares (REDP’s) and the consequences of a failure to redeem them. The remedies available to aggrieved shareholders are explored.
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Redeemable Preference Shares
This article discusses the rights, obligations and taxation implications of Redeemable Preference Shares (REDP), hybrid securities with both debt and equity characteristics as defined by the Australian Securities and Investments Commission (ASIC). Case law examples and the process for issuing REDP according to the Corporations Act 2001 (Cth) are also discussed.