[CTM15420] Distributions: general: repayment of share capital – bonus issues – after repayment
The circumstances leading to the potential abuse in CTM15400 (bonus issue followed by a repayment of share capital) could occur in reverse.
A company could repay share capital and then make a bonus issue of shares. The shareholders would have received cash, but their holdings would be the same as before. Without special legislation, this would not give rise to a distribution.