Companies Act (Cap. 386), article 203

203. Where a company makes a distribution of, or including, a non-cash asset, and any part of the amount at which that asset is stated in the accounts relevant fo r the purposes of the distrib ution in accordance with articles 197 to 202 represents an unrealised profit, that profit is to be treated as a real ised profit - (a) for the purpose of determining the lawfulness of the distribution in accordance wi th this Chapter, whether before or after the dist ribution takes place; and (b) for the purpose of paragraph 14( c)(i) and paragraph 30(3) of the Third Schedule in relation to anything done with a view to or in connection with the making of that distribution. Consequence of unlawful distribution.