Redemption of preference shares - Contractor UK Bulletin Board

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

john@UKCA replied

18 March 2016, 09:14
CRR Transfer

Originally posted by Sujan View Post

For redemption of preference shares there is a clause that: A sum equivalent to the nominal amount of shares being redeemed shall be transferred to the Capital Redemption Reserve.
My question is: After preference shares get redeemed where the nominal amount of shares come from to be transferred to the Capital Redemption Reserve.
Doesn’t a company return nominal value to shareholders while redemption in order to transfer the same value to the Capital Redemption Reserve?

It comes from the P&L Reserve - its a book entry that your Accountant will do for you when preparing the year end accounts.

Rquired otherwise the Capital of the company will be reduced to the detriment of the creditors.
Leave a comment:
Sujan started a topic Redemption of preference shares

18 March 2016, 06:05
Redemption of preference shares

For redemption of preference shares there is a clause that: A sum equivalent to the nominal amount of shares being redeemed shall be transferred to the Capital Redemption Reserve.
My question is: After preference shares get redeemed where the nominal amount of shares come from to be transferred to the Capital Redemption Reserve.
Doesn’t a company return nominal value to shareholders while redemption in order to transfer the same value to the Capital Redemption Reserve?
Tags: None

Working...

X