Peter Rayney offers some practical help for dealing with in-specie distributions.
For companies incorporated in England and Wales, a distribution in specie (or in kind) generally entails a company distributing an asset to its shareholders. It may also arise where a company declares a dividend of a specified cash sum, which is then satisfied by the transfer of the relevant asset to its shareholders.
In-specie distributions are often made in the context of corporate demergers and reconstructions, and their legal requirements must always be respected.
The Companies Act 2006 (CA 2006)
