Section 681

Neither section 678 nor section 679 prohibits a transaction to which this section applies. Those transactions are— a distribution of the company's assets by way of— dividend lawfully made, or distribution in the course of a company's winding up; an allotment of bonus shares; a reduction of capital under Chapter 10 of Part 17; a redemption of shares under Chapter 3 or a purchase of shares under Chapter 4 of this Part; anything done in pursuance of an order of the court under Part 26 or 26A (order sanctioning compromise or arrangement with members or creditors); anything done under an arrangement made in pursuance of section 110 of the Insolvency Act 1986 (c. 45) or Article 96 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) (liquidator in winding up accepting shares as consideration for sale of company's property); anything done under an arrangement made between a company and its creditors that is binding on the creditors by virtue of Part 1 of the Insolvency Act 1986 or Part 2 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).

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Source: legislation.gov.uk · retrieved 2026-09-04