redemption of prefrence share

1.  capital reserve  can not  be used pay off share holder   , because  capital  reserve  is used only to set off  against Capital loss 

2 . Securities  premium  can  not  be used for all  purpose , its  been  restricted to some specific  use  only  . 

you can  redeem preference shares  only they fully paid  and at same you have  create  Capital  Redemption Reserve  out of  profit ever  year  up to the redemption year   for redemption of preference  Shears .