Q&As

Is there any difference between a dividend in specie and a distribution in specie?

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Published by a LexisNexis Corporate expert
Published on: 16 November 2022
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‘Distribution’ is given a very wide definition for the purpose of Part 23 of the Companies Act 2006 (CA 2006).

It is every description of distribution of a company’s assets to its members, whether in cash or otherwise, except:

  1. •

    an issue of bonus shares (whether fully-paid or partly-paid), and

  2. •

    certain:

    1. ◦

      reductions of share capital

    2. ◦

      redemptions of shares

    3. ◦

      share buybacks, and

    4. ◦

      distributions of assets to members on the winding up of a company

A distribution in

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