# Companies Act 1985, Paragraph 72

Extent: E+W+S

(1) Any distribution made by an investment company which reduces the amount of its net assets to less than the aggregate of its called-up share capital and undistributable reserves shall be disclosed in a note to the company’s accounts.
(2) For purposes of this paragraph, a company’s net assets are the aggregate of its assets less the aggregate of its liabilities (including any provision for liabilities within paragraph 89 that is made in Companies Act accounts and any provision that is made in IAS accounts ); and “undistributable reserves” has the meaning given by section 264(3) of this Act.

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Source: https://www.legislation.gov.uk/ukpga/1985/6/schedule/4/paragraph/72 (the official version)
Page: https://openlegislation.uk/companies-act-1985/schedule-4/paragraph-72
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.