Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Redemption definition

What does Redemption mean? In legal practice, redemption is the payoff of a loan or debt security in accordance with the agreed terms so that the borrower’s (or issuer’s) obligations are extinguished and any security is released. It may occur at maturity or earlier (early redemption/prepayment), and typically requires payment of principal, accrued interest and any agreed break costs, make‑whole amount or redemption premium, with any required notices given under the finance documents. Across England & Wales and Northern Ireland, redemption of a mortgage or charge results in a release/discharge and updating of the title register. The mortgagor’s equitable right to redeem (the equity of...

Redeeming redeemable shares under the UK Companies Act 2006: procedures, financing (including capital), directors’ and auditors’ statements, shareholder approvals, notices, creditor objections, MAR closed periods, timing and post-redemption steps

Published by a LexisNexis Corporate expert

Practice notes

$imgtext$

This Practice Note sets out how a limited company can redeem its Redeemable shares. Companies must adhere to Part 18 of the Companies Act 2006 (CA 2006) when both issuing redeemable shares and completing their Redemption. Extra procedural steps apply to a redemption by:

listed companies, which must comply with CA 2006 and the Listing Rules
AIM companies, which must comply with CA 2006 and the AIM Rules for Companies

For more on these additional Requirements for listed and AIM companies, see Practice Note: Public company redemptions of Shares—initial considerations.

Preliminary considerations

Before moving ahead with a redemption, a company should weigh a range of matters. For fuller guidance on these early considerations, see Practice Note: Private company redemptions of shares—initial considerations.

Terms, conditions and manner of redemption

A redemption must take place in the manner, and on the terms and conditions, previously determined by the directors at the time the redeemable shares were allotted, or as prescribed in the company’s articles of association. For further information, see Practice Note: Issue of redeemable shares...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...