Redeem shares is allowed if your company have issued redeemable shares with the agreement that your company will buy them back at the option of your company or your shareholder after a certain period of time.
You can only redeem paid up redeemable shares.
Your company directors may, if authorized either by your company’s articles or by a resolution, set the terms of your shares redemption.
The terms of redemption of shares must be stated in your company’s articles.
Your company must submit the Companies House form SH02 together with a statement of capital to the Registrar of Companies within a month of your redemption.
The form SH02 can also be used to give notice of consolidation, sub-division and re-conversion of stock into shares.
The changes in your shares capital as a result of your shares redemption must be included in your confirmation statement.