C1Part 23Company distributions
Annotations:
Modifications etc. (not altering text)
Chapter 2Matters which are distributions
Distributions in respect of special securities
1018The principal secured: special securities
1
No amount is to be regarded for the purposes of paragraph F in section 1000(1) as representing the principal secured by a security so far as it exceeds any new consideration which has been received by the company for the issue of the security.
This is without prejudice to section 1117(6).
2
Subsection (3) applies if—
a
a security of a company is issued at a premium representing new consideration, and
b
there is a distribution in respect of the security.
3
The reference in paragraph F in section 1000(1) to however much of the distribution represents the principal secured by the security is to be read as a reference to the sum of—
a
however much of the distribution represents the principal, and
b
however much of it represents the premium.
Pt. 23 applied (with modifications) by 2003 c. 1, s. 554AC(3) (as inserted (with effect in accordance with Sch. 1 para. 14 of the amending Act) by Finance Act 2018 (c. 3), Sch. 1 para. 2)