(1) A public company may only make a distribution—
(a) if the amount of its net assets is not less than the aggregate of its called-up share capital and undistributable reserves, and
(b) if, and to the extent that, the distribution does not reduce the amount of those assets to less than that aggregate.
(2) For this purpose a company's “net assets” means the aggregate of the company's assets less the aggregate of its liabilities.
(3) “Liabilities” here includes—
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