S.L. 234.42 Art. 96Consequence of unlawful distribution.

(1) When a distribution made by a company to any of its members is made in contravention of the preceding provision such members shall be bound to repay such sums to the company on a demand in writing of the company or any interested person: Provided that nothing in this paragraph shall prohibit a company from distributing interim dividends: Provided further that a decision to do so is based on a reasonable expectation that the amount distributed will form part of the distributable assets of the company at the end of the accounting period.

(2) The provisions of this regulation shall apply without prejudice to any obligation imposed apart from this regulation on a member of a company to repay a distribution unlawfully made to him.