Companies (Amendment) Act, 1983
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Restriction on distribution of assets. |
46.—(1) Subject to section 47 , a public limited company may only make a distribution at any time— | |
(a) if at that time the amount of its net assets is not less than the aggregate of the company's called-up share capital and its 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 the purposes of this section the undistributable reserves of a public limited company are— | ||
(a) the share premium account; | ||
(b) the capital redemption reserve fund; | ||
(c) the amount by which the company's accumulated, unrealised profits, so far as not previously utilised by any capitalisation, exceed its accumulated, unrealised losses, so far asnot previously written off in a reduction or reorganisation of capital duly made; and | ||
(d) any other reserve which the company is prohibited from distributing by any enactment, other than one contained in this Part, or by its memorandum or articles. | ||
(3) Subsections (4) to (8) of section 45 shall apply for the purposes of this section as they apply for the purposes of that section. | ||
(4) A public limited company shall not include any uncalled share capital as an asset in any account relevant for the purposes of this section. |