Part 23Company distributions

Chapter 2Matters which are distributions

Distributions in respect of non-commercial securities

1008Consideration for issue of security exceeding amount of principal

1

This section applies if—

a

a company issues a security, and

b

the amount of new consideration received by the company for the issue of the security exceeds the amount of the principal secured by the security.

2

The amount of the principal is treated for the purposes of paragraph E in section 1000(1) as increased to the amount of that new consideration.

3

Section 1007 does not have effect in relation to the security.

4

This section is subject to sections 1009 and 1012.