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The capital redemption reserve is a non-distributable reserve and represents paid up share capital.
To repay the money if the company wants to cancell the shares or wants to reduce its share capital, the money reserved for redemption of shares, be utilized to reduce the shares by making the payment to its investors.
I agree with Mr. Malik, it is a specific purpose reserve and reserved for redemption of Shares and applied when it is needed to buy back the issued shares.
AGREE WITH MR MALIK & MR KHALED ANSWERS
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