829 Meaning of “distribution”
829 Meaning of “distribution”
Companies Act 2006 | Legislation

(1)     In this Part “distribution” means every description of distribution of a company's assets to its members, whether in cash or otherwise, subject to the following exceptions.

(2)     The following are not distributions for the purposes of this Part—

(a)     an issue of shares as fully or partly paid bonus shares;

(b)     the reduction of share capital—

(i)     by extinguishing or reducing the liability of any of the members on any of the company's shares in respect of share capital not paid up, or

(ii)     by repaying paid-up share capital;

(c)     the redemption or purchase of any of the company's own shares out of capital (including the proceeds of any fresh issue of shares) or out of unrealised profits in accordance with Chapter 3, 4 or 5 of Part 18;