# Companies Act 1985, Section 181: Definitions for Chapter VII.

Extent: E+W+S

In this Chapter—
(a) “distributable profits”, in relation to the making of any payment by a company, means those profits out of which it could lawfully make a distribution (within the meaning given by section 829 of the Companies Act 2006) equal in value to the payment, and
(b) “permissible capital payment” means the payment permitted by section 171;
and references to payment out of capital are to be construed in accordance with section 171.

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Source: https://www.legislation.gov.uk/ukpga/1985/6/section/181 (the official version)
Page: https://openlegislation.uk/companies-act-1985/section-181
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.