The permissible capital payment
‘(1) The payment that may, in accordance with this Chapter, be made by a company out of capital in respect of the redemption or purchase of its own shares is such amount as, after applying for that purpose—
(a) any available profits of the company, and
(b) the proceeds of any fresh issue of shares made for the purposes of the redemption or purchase,
is required to meet the price of redemption or purchase.
(2) That is referred to below in this Chapter as “the permissible capital payment” for the shares.’.—[Margaret Hodge.]