Companies Act (Cap. 386), article 194

194. (1) Subject to the following pro visions of this article, an investment company with fixed share capital may also make a distribution at any time out of its accumulated, realised reven ue profits, so far as not previously utilised by a distribution or capitalisation, less its accumulated revenue losses, whether realised or unrealised, so far as not previously written off in a reduct ion or reorganisation of capital duly made - (a) if at that time the amount of its assets is at least equal to one and a half times the aggregate of its liabilities, and 134 CAP. 386.] COMP ANIES (b) if, and to the extent that, the distribution does not reduce that amount to less than one and a half times that aggregate. (2) In sub-article (1)( a), "liabilities" includes any provision for liabilities or charges within the meaning of paragraph 7 of the Third Schedule. (3) An investment company with fixed share capital shall not include any uncalled issued share capital as an asset in any accounts relevant for the pu rposes of this article. (4) An investment company with fixed share capital may not make a distribution by virtue of sub-article (1) unless - (a) its shares are listed on a regulated market; and (b) during the relevant period it has not - (i) distributed any of its capital profits, or (ii) applied any unrealised profits or any capital profits, realised or un realised, in paying up debentures or amounts unpaid on its issued share capital. (5) The "relevant period" under sub-article (4) shall be the period beginning with - (a) the first day of the acco unting period immediately preceding that in which the pr oposed distribution is to be made; or (b) where the distribution is to be made in the company’s first accounting period, the first day of that period, and ending with the date of the distribution. (6) "Investment company with fixed share capital" means a public company which complies with the following requirements: (a) the business of the company consists of investing in funds mainly in securities with the aim of spreading investment risk and giving members of the company the benefit of the results of the management of its funds; (b) none of the company’s holdings in companies other than those which are, for the time being, in investment companies with fixed share capital, represents more than fifteen per cent by value of the investing company’s investments; (c) distribution of the company’s capital profits is prohibited by its memorandum or articles; and (d) the company has not retained, otherwise than in compliance with this Chapter, in respect of any accounting period, more than fifteen per cent of the income it derives from securities. Extension of article 194 to other companies.