SCHEDULE 1MODEL ARTICLES FOR PRIVATE COMPANIES LIMITED BY SHARES
PART 3SHARES AND DISTRIBUTIONS
DIVIDENDS AND OTHER DISTRIBUTIONS
Non-cash distributionsI134
1
Subject to the terms of issue of the share in question, the company may, by ordinary resolution on the recommendation of the directors, decide to pay all or part of a dividend or other distribution payable in respect of a share by transferring non-cash assets of equivalent value (including, without limitation, shares or other securities in any company).
2
For the purposes of paying a non-cash distribution, the directors may make whatever arrangements they think fit, including, where any difficulty arises regarding the distribution—
a
fixing the value of any assets;
b
paying cash to any distribution recipient on the basis of that value in order to adjust the rights of recipients; and
c
vesting any assets in trustees.