Companies Ordinance Cap 32
Section Num: 49J Version Date 13/02/2004
Availability of profits for purposes of section 49I
(1) The reference in section 49I(3)(a) to available profits of the company is to the company's profits which are available for distribution (within the meaning of Part IIA); but the question whether a company has any profits so available and the amount of any such profits are to be determined for purposes of that section in accordance with subsections (2), (3), (4), (5) and (6), instead of sections 79F, 79G, 79H, 79I, 79J and 79K.
(2) Subject to subsection (3), that question is to be determined by reference to-
(a) profits, losses, assets and liabilities;
(b) provisions for depreciation, diminution in value of assets and retentions to meet liabilities; and
(c) share capital and reserves (including undistributable reserves), as stated in the relevant accounts for determining the permissible capital payment.
(3) The relevant accounts for this purpose are such accounts, prepared as at any date within the period for determining the amount of the permissible capital payment, as are necessary to enable a reasonable judgment to be made as to the amounts of any of the items mentioned in subsection (2)(a) to (c).
(4) For purposes of determining the amount of the permissible capital payment, the amount of the company's available profits (if any) determined in accordance with subsections (2) and (3) is treated as reduced by the amount of any distributions lawfully made by the company after the date of the relevant accounts and before the end of the period for determining the amount of that payment.
(5) The reference in subsection (4) to distributions lawfully made by the company includes-
(a) financial assistance lawfully given out of distributable profits in a case falling within section 47D or 47E;
(b) any payment lawfully made by the company in respect of the purchase by it of any shares in the company (except a payment lawfully made otherwise than out of distributable profits); and
(c) a payment of any description specified in section 49C(1) lawfully made by the company.
(6) Reference in this section to the period for determining the amount of the permissible capital payment is to the period of 3 months ending with the date on which the statement of the directors purporting to specify the amount of that payment is made in accordance with section 49K(3). (Amended 28 of 2003 s. 20)
(Added 77 of 1991 s. 4)
[cf. 1985 c. 6 s. 172 U.K.]
