BizTerm Definition
Redemption Rights
Full Definition

Redemption rights give shareholders an option to force a redemption by other shareholders (or repurchase by the corporation) of the shares. The right, whether granted by other shareholders or by the corporation, may be made exercisable at the descretion of the option holder or only upon certain events and during certain periods. The redemption price can be specified in the articles or set by the board if not in the articles.

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