Redeeming redeemable preference shares
Check the conditions to redeem redeemable preference shares, and the filing requirements to notify ACRA.
Last updated 29 January 2026
What are redeemable preference shares
Redeemable preference shares are shares that your company can buy back (redeem) later. Your company's constitution must specify the terms of the redemption, such as when and how you can redeem these shares.
More details: Understanding company shares
Conditions to redeem
Your company can redeem redeemable preference shares if you meet these conditions:
The shares must be fully paid up
You are unable to redeem redeemable preference shares unless they are fully paid up.
Requirements when redeeming using company capital
If you redeem the shares using your company's capital (not from a new share issue), you need to:
Have all directors make a solvency statement for the redemption; and
File a copy of the solvency statement with ACRA.
You do not need to meet these requirements if you redeem the shares using proceeds from a new share issue (made specifically for the redemption). This is not treated as redemption out of the company's capital.
More details: Section 70 of the Companies Act 1967
Filing a notice of redemption
This guide explains how to file a notice of redemption of redeemable preference shares to notify ACRA. If your company wants to redeem redeemable preference shares, you must file this notice.
Who may file
Company officers (such as the director or company secretary) can file directly.
You may also engage a corporate service provider to file on your behalf.
Fees and processing time
Filing a notice of redemption
What you need to know | Details |
|---|---|
Fees | Free |
Approval time | Immediate |
How to file
Open the General lodgement eService and log in.
Select File notice of redemption of redeemable preference shares.
Complete the required information.
Submit your filing.