Section 840(2)

The financial assistance and other payments that are relevant for this purpose are— financial assistance lawfully given by the company out of its distributable profits; financial assistance given by the company in contravention of section 678 or 679 (prohibited financial assistance) in a case where the giving of that assistance reduces the company's net assets or increases its net liabilities; payments made by the company in respect of the purchase by it of shares in the company, except a payment lawfully made otherwise than out of distributable profits; payments of any description specified in section 705 (payments apart from purchase price of shares to be made out of distributable profits).

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