Companies Act (Cap. 386), article 193

193. (1) A public company may only make a distribution at any time - (a) if at that time the amount of its net assets is not less than the aggregate of its called-up issued share capital and undistributable reserves; and COMP ANIES [CAP. 386. 133 (b) if, and to the extent that, the distribution does not reduce the amount of those assets to less than that aggregate. The provisions of this sub-article shall be subject to the provisions of articles 194 and 195. (2) In sub-article (1), "net asse ts" means the aggregate of the company’s assets less the aggreg ate of its liabilities. "Liabil ities" include any amount retained as reasonably necessary for the purpose of providing for any liability or loss which is either likely to be incurred or certain to be incurred but uncertain as to am ount or as to the date on which it will arise. (3) A company’s undistributable reserves are - (a) the share premium account; (b) the capital redemption reserve; (c) the amount by which the company’s accumulated, unrealised profits, so far as not previously utilised by capitalization of a description to which this paragraph applies, exceed its accumula ted, unrealised losses, so far as not previously written off in a reduction or reorganisation of capital duly made; (d) the difference by which the profit attributable to the participating interest and recognised in the profit and loss account exceeds the amou nt of dividends already received or the payment o f which can be claimed; (e) the amount of development costs included under ‘Assets’ which have not been completely written off; and (f) any other reserve which the company is prohibited from distributing by any legislation or by its memorandum or articles; and paragraph (c) shall apply to every description of capitalization except a transfer of profits of the company to its capital redemption reserve on or after 1st January 1995; (g) the revaluation reserve unless it represents a gain actually realised. (4) A public company shall not include any uncalled issued share capital as an asset in any accounts relevant for the purp oses of this article. Other distributions by investment companies with fixed share capital. Amended by: IV . 2003.86. IX. 2003.85; IX. 2008.30; XVI. 2014.59.