Section 79: Redemption at option of shareholder

79. Redemption at option of shareholder (1) Where a share is redeemable at the option of the holder of the share, and the holder gives proper notice to the company requiring the company to redeem the share— (a) the company shall redeem the share on the date specified in the notice, or if no date is specified, on the date of receipt of the notice; (b) the share is deemed to be cancelled on the date of redemption; and (c) from the date of redemption the former shareholder ranks as an unsecured creditor of the company for the sum payable on redemption. (2) A redemption under this section— (a) shall not be a distribution for the purposes of sections 61 and 63; but (b) shall be deemed to be a distribution for the purposes of section 66 (1) and (5).