Section LP 6 — Income Tax Act 2007: Deriving supplementary dividend and breach of terms of trust

LP 6 Deriving supplementary dividend and breach of terms of trust Class of shares (1) The payment of a supplementary dividend on only some shares in a class of shares does not constitute a breach of— (a) section 53 of the Companies Act 1993; or (b) the company’s constitution or its articles of association, unless the provision expressly refers to this subsection; or (c) any other provision. Trusts (2) If a trustee derives a dividend and is required under the terms of a trust to distribute it as beneficiary income to a beneficiary, the trustee’s distribution of a supplementary dividend does not breach the terms of the trust. Defined in this Act: beneficiary income , company , distribution , dividend , pay , share , supplementary dividend , trustee , Compare: 2004 No 35 s LE 2(11), (12)