State and briefly explain the conditions which must be fulfilled before a company limited to shares can issue redeemable preference shares.

• The issue must be authorized by the articles of association of the company.
• The company‟s capital must have been divided into different classes of capital some ofwhich must be irredeemable.
• Consent of the Capital Markets Authority is necessary in the case of companies quoted at the Nairobi Stock Exchange.
• Notice of the issue must be given to the registrar of companies.