The way it works when a shareholder redeems his shares to the company, anybody can do it. http://www.borelassociates.com/topics/Stock%20Redemptions.pdf http://www.vakilno1.com/bareacts/companiesact/s80.htm When redeemed, shares are paid according to the companys profit. Hence having a SHARE in the companys profit or debt. You cannot share debt without sharing their profits, it works both ways.