836 Justification of distribution by reference to relevant accounts
836 Justification of distribution by reference to relevant accounts
Companies Act 2006 | Legislation

(1)     Whether a distribution may be made by a company without contravening this Part is determined by reference to the following items as stated in the relevant accounts—

(a)     profits, losses, assets and liabilities;

(b)     provisions of the following kinds—

(i)     where the relevant accounts are Companies Act accounts, provisions of a kind specified for the purposes of this subsection by regulations under section 396;

(ii)     where the relevant accounts are IAS accounts, provisions of any kind;

(c)     share capital and reserves (including undistributable reserves).

(2)     The relevant accounts are the company's last annual accounts, except that—

(a)     where the distribution would be found to contravene this Part by reference to the company's last annual accounts, it may be justified by reference to interim accounts, and