Expert
6394 Points
Joined May 2011
Redemption means the money invested by the holder is returened and the company having no liability on that share/Debenture/Bond etc.. and conversion means the creditor taking the option to convert the loan in to share, in this situation the companies creditor will reduced but the paid up capital will increased. For conversion there should be an option to convert. Shares can also convert from one class to another class, in this way one class of share will reduced and another class will increas in paid up capital.