New Clause 282
Company Law Reform Bill [Lords]
Distributions to be made only out of profits available for the purpose
‘(1) A company may only make a distribution out of profits available for the purpose.
(2) A company’s profits available for distribution are its accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital duly made.
(3) Subsection (2) has effect subject to sections (Distributions by investment companies out of accumulated revenue profits) and (Power to extend provisions relating to investment companies) (investment companies etc: distributions out of accumulated revenue profits).’.—[Margaret Hodge.]