This section applies where a company—
issues shares on terms that they are or are liable to be redeemed, or
agrees to purchase any of its shares.
The court shall not grant an order for specific performance of the terms of redemption or purchase if the company shows that it is unable to meet the costs of redeeming or purchasing the shares in question out of distributable profits.
Subsection (4) does not apply if—
the terms provided for the redemption or purchase to take place at a date later than that of the commencement of the winding up, or
during the period—
beginning with the date on which the redemption or purchase was to have taken place, and
ending with the commencement of the winding up,
the company could not at any time have lawfully made a distribution equal in value to the price at which the shares were to have been redeemed or purchased.