C3C1C2Part 23Distributions
Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2
Pt. 23 excluded (1.10.2011) by Postal Services Act 2011 (c. 5), ss. 8, 93, Sch. 1 para. 18(a); S.I. 2011/2329, art. 3
Chapter 3Supplementary provisions
Consequences of unlawful distribution
I1847Consequences of unlawful distribution
1
This section applies where a distribution, or part of one, made by a company to one of its members is made in contravention of this Part.
2
If at the time of the distribution the member knows or has reasonable grounds for believing that it is so made, he is liable—
a
to repay it (or that part of it, as the case may be) to the company, or
b
in the case of a distribution made otherwise than in cash, to pay the company a sum equal to the value of the distribution (or part) at that time.
3
This is without prejudice to any obligation imposed apart from this section on a member of a company to repay a distribution unlawfully made to him.
4
This section does not apply in relation to—
a
financial assistance given by a company in contravention of section 678 or 679, or
b
any payment made by a company in respect of the redemption or purchase by the company of shares in itself.
Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))