The Legal Regime of Redeemable Share and Share Redemption in Iranian and English Law

Share redemption occurs when a company rebuys its shares at a specific time after it had sold them to another party.  After redemption, these shares transform into treasury shares and will remain as such until resold again. The ways of redemption which effect shareholders’ rights include:  Repurchase from Market, Off-Market Repurchase, Fixed Price Tender Offer Repurchase and Dutch Auction. The redemption has an influence on share’s financial and management rights and the company, as the treasury shares’ owner will lose most of its shares’ rights by explicit stipulation of acts and most legal principles.