Part V Share Capital, its Increase, Maintenance and Reduction

Chapter VII Redeemable Shares; Purchase by a Company of its Own Shares

Supplementary

181 Definitions for Chapter VII.

In this Chapter—

a

“distributable profits”, in relation to the making of any payment by a company, means those profits out of which it could lawfully make a distribution (within the meaning given by section 263(2)) equal in value to the payment, and

b

“permissible capital payment” means the payment permitted by section 171;

and references to payment out of capital are to be construed in accordance with section 171.