352Redemption of CCUs

352 Redemption of CCUs (1) The redemption of CCUs is not to be considered to be a reduction in the share capital of the co-operative. (2) A co-operative may redeem CCUs but only on the terms and in the way that are provided by the terms of their issue and only if they are fully paid up. (3) CCUs may not be redeemed except out of: (a) profits; or (b) the proceeds of a fresh issue of shares, or an approved issue of CCUs, made for the purpose of the redemption. (4) An issue of CCUs is an approved issue for the purposes of subsection (3) if there is the same entitlement to priority of payment of capital and dividend in relation to shares in the co-operative as there was for the redeemed CCUs. (5) Any premium payable on redemption is to be provided for out of profits or out of the share premium account or an account created for that purpose.