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626. Financing of redemption

(1) A private limited company may redeem redeemable shares out of capital in accordance with Chapter 5.
(2) Subject to that, redeemable shares in a limited company may only be redeemed out of-
(a) distributable profits of the company, or
(b) the proceeds of a fresh issue of shares made for the purposes of the redemption.
(3) This section is subject to section 676(4) (terms of redemption enforceable in a winding up).