A redemption returns shares to the company and reduces issued capital. Use this when the company buys back shares from one or more shareholders.
- Open the entity client's detail page.
- Click the Contacts tab and scroll to the Capital section.
- Click the capital type.
- Click Redeem Shares.
- Step 1 — total amount: enter the total number of shares being redeemed and the redemption price per share.
- Step 2 — allocation: allocate the redemption across shareholders. The total must equal the amount in step 1.
- Click Save.
The issued share count drops by the redeemed amount, the affected shareholders' counts decrease, and shareholding percentages are recalculated across the remaining holders.
Tip: A redemption is different from a transfer — it permanently retires the shares rather than passing them to another holder. If you want to move shares between holders, use Transfer Shares instead.
Note: Local company law often restricts how and when a redemption can be executed (e.g. only out of distributable reserves). The platform tracks the event; it does not check legal compliance — confirm the action is permitted under the entity's jurisdiction before recording it.