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CORPORATE LAW COURSEWORK:
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NOZMUL HUSSAIN 2489340 PAC YEAR 2 SEMESTER 2 CORPORATE LAW COURSEWORK: 'FASHION DESIGNS PLC' Lecturer: Jerry Defreitas Group 5 2006/2007 As an avowed expert on corporate law I have been requested to advise the board of directors of Fashion Designs plc on various company law issues related to the company. Issue A: Does a company have to satisfy both the 'realised profits test' and the 'net assts test' before it can pay a dividend to its shareholders? Also, explain what the 'realised profits test' and 'net assets test' are and to what extent is the above statement true if at all in relation to company law. I would like to explain the procedure by which distributable profits1are calculated. Section 263 of the Companies Act 1985 states that a limited company with a share capital (such as Fashion Designs Plc) is prohibited from making a distribution unless out of distributable profits. The only exceptions to this rule when distribution can...
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