Part 23Distributions
Chapter 1Restrictions on when distributions may be made
General rules
830Distributions to be made only out of profits available for the purpose
(1)
A company may only make a distribution out of profits available for the purpose.
(2)
A company's profits available for distribution are its accumulated, realised profits, so far as not previously utilised by distribution or capitalisation, less its accumulated, realised losses, so far as not previously written off in a reduction or reorganisation of capital duly made.