Section 681 | Unconditional exceptions

(1)Neither section 678 nor section 679 prohibits a transaction to which this section applies.

(2)Those transactions are—

(a)a distribution of the company's assets by way of—

(i)dividend lawfully made, or

(ii)distribution in the course of a company's winding up;

(b)an allotment of bonus shares;

(c)a reduction of capital under Chapter 10 of Part 17;

(d)a redemption of shares under Chapter 3 or a purchase of shares under Chapter 4 of this Part;

(e)anything done in pursuance of an order of the court under Part 26 or 26A (order sanctioning compromise or arrangement with members or creditors);^F1

(f)anything done under an arrangement made in pursuance of section 110 of the Insolvency Act 1986 (c. 45) or Article 96 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) (liquidator in winding up accepting shares as consideration for sale of company's property);

(g)anything done under an arrangement made between a company and its creditors that is binding on the creditors by virtue of Part 1 of the Insolvency Act 1986 or Part 2 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).