The following Corporate guidance note provides comprehensive and up to date legal information covering:
The law regulating the making of distributions by a company, as it applies to all companies, is set out in this Practice Note. For details of the additional rules and guidance that specifically apply to listed companies and AIM companies, see Practice Note: Dividends—listed and AIM companies.
’Distribution’ is given a very wide definition for the purpose of Part 23 of the Companies Act 2006 (CA 2006).
A distribution is every description of distribution of a company’s assets to its members, whether in cash or otherwise, except:
an issue of bonus shares (whether fully paid or partly paid), and
reductions of share capital
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