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7(1)This paragraph applies where a distribution is proposed to be declared—U.K.
(a)during an accounting reference period of the transferee company which includes a transfer date; or
(b)before any accounts are laid or filed in respect of such a period.
(2)[F1sections 836 to 840] [F2of the Companies Act 2006] (accounts relevant for determining whether a distribution may be made by a company) shall have effect as if—
(a)references in [F3section 836] to the company’s accounts and to accounts relevant under that section, and
(b)references in [F4section 839] to initial accounts,
included references to such accounts as, on the assumptions stated in sub-paragraph (3), would have been prepared under [F5section 394] of that Act in respect of the relevant year (“the relevant accounts”).
(3)Those assumptions are—
(a)that the relevant year was a financial year of the transferee company;
(b)that the vesting of property, rights and liabilities in accordance with the relevant scheme was effected immediately after the beginning of that year;
(c)that so much of the relevant scheme as contains provision by or under which there is a determination of the value of an asset to which the company becomes entitled in accordance with the scheme has effect for determining the value of that asset for the purposes of the accounts in question;
(d)that so much of the relevant scheme as contains provision by or under which there is a determination of the amount of a liability to which the company becomes subject in accordance with the scheme has effect for determining the amount of that liability for the purposes of the accounts in question;
(e)that securities of the transferee company issued or allotted before the declaration of the distribution had been issued or allotted before the end of the relevant year; and
(f)such other assumptions as may appear to the directors of the transferee company to be necessary or expedient for the purposes of this paragraph.
(4)The relevant accounts shall not be regarded as statutory accounts for the purposes of paragraph 8 of Schedule 7.
(5)In this paragraph—
“accounting reference period” has the meaning given by [F6section 391 of the Companies Act 2006];
“complete financial year” means a financial year ending with 31st March;
“distribution” has the same meaning as in [F7Part 23 of the Companies Act 2006 (see section 829 of that Act)];
“the relevant year”, in relation to a transfer date, means the last complete financial year ending before that date;
“a transfer date”, in relation to the transferee company, means the date of the coming into force of the relevant scheme.
Textual Amendments
F1Words in Sch. 6 para. 7(2) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 228(3)(a)(i) (with arts. 6, 11, 12)
F2Words in Sch. 6 para. 7(2) inserted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 220(8)(d)(i) (with art. 10)
F3Words in Sch. 6 para. 7(2)(a) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 228(3)(a)(ii) (with arts. 6, 11, 12)
F4Words in Sch. 6 para. 7(2)(b) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 228(3)(a)(iii) (with arts. 6, 11, 12)
F5Words in Sch. 6 para. 7(2) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 228(3)(a)(iv) (with arts. 6, 11, 12)
F6Words in Sch. 6 para. 7(5) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), art. 2(2), Sch. 1 para. 228(3)(b) (with arts. 6, 11, 12)
F7Words in Sch. 6 para. 7(5) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 220(8)(d)(ii) (with art. 10)
Commencement Information
I1Sch. 6 para. 7 in force at 5.10.2004 by S.I. 2004/2575, art. 2(1), Sch. 1
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