Calvin intends to increase the Company's cash capital by allotting new shares to Doris, his friend, because Calvin wants the Company to develop a new line of business - selling desserts and pastries. However, Calvin does not want the issued capital of the Company to be increased permanently. He intends to reduce the issued capital back to the position before allotment once there is sufficient cash flow or distributable profits available for running the dessert and pastry business.

Question:

No prohibitions or restrictions in respect of the allotment of redeemable and preference shares are stated in the articles of association of the Company. Advise Calvin on the differences between redeemable and preference shares and suggest which type of shares would suit the intended allotment of shares to Doris.