366 Ch. 31. No. 1.| Compante.

issue preference shares which are, or at the option of the
company are to be hable, to be redeemed
Provided that

(a) no such shares shall be redeemed except out of
profits of the company which would otherwise be
available for dividend or out of the proceeds of a fresh
issue of shares made for the purposes of the redemption;

(6) no such shares shall be redeemed unless they are
fully paid,

(c) where any such shares are redeemed otherwise
than out of the proceeds of a fresh issue, there shall out
of profits which would otherwise have been available
for dividend be transferred to a reserve fund, to be
called “the capital redemption reserve fund,”” a sum
equal to the amount applied in redeeming the shares,
and the provisions of this Ordinance relating to the
reduction of the share capital of a company shall,
except as provided in this section, apply as if the capital
redemption reserve fund) were paid-up share capital
of the company

(4) where any such shares are redeemed out of the
proceeds of a fresh issue, the premium, if any, payable
on redemption, must have been provicled for out of the
profits of the company before the shares are redeemed.

(2) There shall be included in every balance sheet of a
company which has issued redeemable preference shares a
statement specifying what part of the issued capital of the
company consists of such shares and the date on or before
which those shares are, or are to be Hable, to be redeemed.

If a company fails to comply with the provisions of
this subseetion, the company and every officer of the com-
pany who ts in default shall be liable to a fine of five hundred
dollars.

(3) Subject to the provisions of this section, the
redemption of preference shares thereunder may be effected
on such terms and in such manner as may be provided by the
articles of the company

(4) Where in pursuance of this section a company has
redeemed or is about to redeem any preference shares, it
shall have power to issue shares up to the nominal amount
of the shares redeemed or to be redeemed as if those shares