Give it back – unlawful distributions

Detailed requirements govern the distribution of value by UK listed companies to their shareholders, creating numerous trip hazards for the unwary - Both common law and statute impose strict requirements around distributions by UK incorporated companies to their shareholders. These relate in particular to the prohibition on companies making distributions except out of profits that are available for the purpose – so– called distributable reserves – and the need to evidence these reserves.... By: Herbert Smith Freehills Kramer