Company Law Usually Requires That Where a Company Redeems Preference

question 8

True/False

Company law usually requires that where a company redeems preference shares it must do so out of profits that would otherwise be available for dividends or out of the proceeds of a fresh issue of shares made for the purpose of the redemption.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for quick response to perceived threats by accelerating heart rate and increasing blood pressure, among other effects.

Endocrine Glands

Endocrine glands are glands that secrete hormones directly into the bloodstream, regulating various bodily functions and processes.

Bloodstream

The Bloodstream refers to the continuous flow of blood through the circulatory system, delivering nutrients and oxygen to cells and removing waste products.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.