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Section 470 of The Companies Act No. 17 of 2015: Determination of available profits

    

(1) The available profits of the company are determined as follows—
(a) first—
Determine the profits of the company by reference to the following items as stated in the relevant financial statements— (i) profits, losses, assets and liabilities;
(ii) provisions of a kind specified for the purposes of this subsection by the regulations;
(iii) share capital and reserves (including undistributable reserves).
(b) Second—
Reduce the amount so determined by the amount of— (i) each distribution lawfully made by the company; and
(ii) each other relevant payment lawfully made by the company out of distributable profits, after the date of the relevant accounts and before the end of the relevant period.
(2) For the purpose of subsection (1)(b)(i), "other relevant payment lawfully made" includes—
(a) financial assistance lawfully given out of distributable profits in accordance with Division 2;
(b) payments lawfully made out of distributable profits in respect of the purchase by the company of any shares in the company; and (c) payments of any description specified in section 462.
(3) The resulting figure is the amount of available profits.
(4) For the purposes of this section, "the relevant financial statements" are any
that—
(a) are prepared as at a date within the relevant period; and
(b) are such as to enable a reasonable judgment to be made as to the amounts of the items mentioned in subsection (2).
(7) In this section, "the relevant period" means the period of three months ending with the date on which the directors' statement is made in accordance with section 472.

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