There are several types of distributions as detailed in D5.102 and the second category of distributions after dividends is any other distribution out of the assets of the company in respect of shares in the company except however much (if any) of the distribution1:
- Ìý
•ÌýÌýÌýÌý represents a repayment of capital on the shares, or
- Ìý
•ÌýÌýÌýÌý is equal in amount or value to any new consideration received by the company for the distribution when it is made
It does not matter if the distribution is in cash or not.
Exceptions to this general rule are set out in 'Excluded from being a distribution' in D5.102.
The meaning of 'repayment of capital' and 'new consideration' are detailed in D5.103. What is meant by 'out of assets' and 'in respect of shares of the company' are explained below.
Distributions—meaning of out of assets of the company
A distribution is made out of the assets of a company if the cost of the distribution
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