What resolution is needed for the redemption of redeemable shares?

The redemption of redeemable shares generally requires an ordinary resolution. An ordinary resolution is a resolution passed by a simple majority of votes at a general meeting, which is the standard level of approval for many corporate actions that do not require the heightened level of scrutiny associated with special resolutions.

Redeemable shares are a specific type of share that can be bought back by the company according to the terms set out when the shares were issued. The flexibility of redeemable shares allows companies to manage their capital structure effectively. The requirement for an ordinary resolution reflects the general principle that routine corporate matters can often be approved with straightforward majority consent rather than requiring the more stringent and formal approach associated with special resolutions.

While it is true that certain actions related to shares and alterations to capital may require special resolutions, the specific action of redeeming shares is typically within the purview of an ordinary resolution, making it more accessible for companies to execute such operational decisions.