(1) Subject to section 1230, a CCIV's power under section 124 to issue shares includes the power to issue redeemable shares.
(2) All, some, or none of the shares in a CCIV may be redeemable shares.
Note: Subsections (1) and (2) reflect the fact that CCIVs may be open-ended investment vehicles.
(3) This section operates concurrently with section 254A.
(4) A redeemable share , in a CCIV, is a share (other than a preference share) in a CCIV that is liable to be redeemed at the option of one or more of the following:
(a) the CCIV;
(b) the member.
Option to redeem is not a preference
(5) In determining whether a share in a CCIV is a preference share, any rights attaching to shares in the CCIV with respect to redemption are to be disregarded.
Note: As a result, a CCIV may have ordinary shares that are redeemable as well as ordinary shares that are not redeemable. Preferences relating to redemption (including preferences relating to who has the option to redeem) are ignored in determining whether a share is a preference share.