113 Clause 56, page 62, line 19, leave out from "( to") to end of line 22 and insert:
("the making of any payment or the giving of any financial assistance (within the meaning of section 42(5) of this Act) by any company, means those profits out of which it could lawfully make a distribution equal in value to that payment or assistance, including in any case where the financial assistance is or includes a non-cash asset (within the meaning of section 87 of the 1980 Act) any profit which, if the company were to make a distribution of that asset, would by virtue of section 43A of the 1980 Act (distributions in kind) be available for that distribution;
distribution" has the meaning given by section 45(2) of the 1980 Act; and").
§ Lord Mackay of Clashfern
My Lords, I beg to move that this House doth agree with the Commons in their Amendment No. 113. This amendment amends the definition of "distributable profits" provided in Clause 57 for the purposes of Part III of the Bill and provides an additional definition of "distribution". The amendment has the effect of ensuring that all of the provisions of Part III of the 1980 Act, which determine the legality of a distribution, apply to any payment in connection with a purchase or redemption of own shares or any financial assistance which is required by the Bill to be paid out of distributable profits. My Lords, I beg to move.
§ Moved, That the House doth agree with the Commons in the said amendment. (Lord Mackay of Clashfern.)
§ On Question, Motion agreed to.