Are you ready to dive into the intricacies of due diligence and company transactions? Join us as we explore one of the key issues that can arise during due diligence: unlawful distributions.
Discover what constitutes a distribution under the Companies Act 2006, why distributions are tightly regulated, and the serious consequences of making an unlawful distribution. We explain the common pitfalls, from insufficient distributable profits to the personal liabilities directors and shareholders may face.
We also explore practical solutions, including how companies can rectify unlawful distributions, ensure compliance and pave the way for smoother transactions.
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About the author
Mei Chung is an Associate in the Corporate, Commercial and Finance team. She advises entrepreneurs, investors and established businesses across a variety of sectors on a broad range of corporate and commercial matters.
Her core areas of expertise include:
- Startup and scaleup investments
- Mergers and acquisitions
- Corporate advisory
