“Disguised Distributions” – lawful or unlawful, that is the question

Hogan Lovells
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Intra-group transactions are the subject of close scrutiny, particularly where the financial condition of the group is in question. Directors must carefully consider whether each proposed transaction would amount to a distribution and, if so, whether or not it is an unlawful distribution out of capital in breach of the Companies Act 2006 (the Act), which gives rise to liability for directors and relevant group members.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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