Tax and company law consequences of unlawful distributions (‘illegal dividend’)
What is a dividend? The term ‘dividend’ is not explicitly defined in the Companies Act 2006 (“the Act”); instead the Act refers to ‘distribution’ (s.829 CA 2006) which is defined very broadly. However, dividend as a term does indeed feature in the Act in a different context in s.548, and in s.669 as also in […]
Close companies
A close company is defined in s.439 of the Corporation Tax Act 2010 (CTA/10) as one where one of the following applies: Controlled by 5 or less participators. Controlled by director participators where there are more than 5 participators On winding up more than 50% of the assets would be distributed a) to 5 or […]
