# Commission Regulation (EC) No 1073/2005 of 7 July 2005 amending Regulation (EC) No 1725/2003 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council, as regards IFRIC 2 (Text with EEA relevance), Division 8

Extent: E+W+S+N.I.

Local law, regulation or the entity’s governing charter can impose various types of prohibitions on the redemption of members’ shares, e.g. unconditional prohibitions or prohibitions based on liquidity criteria. If redemption is unconditionally prohibited by local law, regulation or the entity’s governing charter, members’ shares are equity. However, provisions in local law, regulation or the entity’s governing charter that prohibit redemption only if conditions — such as liquidity constraints — are met (or are not met) do not result in members’ shares being equity.

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Source: https://www.legislation.gov.uk/eur/2005/1073/annex/division/IFRIC/division/5/division/8 (the official version)
Page: https://openlegislation.uk/eu-regulation-2005-1073/annex/division-IFRIC/division-5/division-8
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.