
1 

(1) These Regulations may be cited as the Companies (Investment Companies) (Distribution of Profits) Regulations 1999 and shall come into force on 8th November 1999.
(2) In these Regulations, “the 1985 Act” means the Companies Act 1985.
2 
In section 265 of the 1985 Act (other distributions by investment companies), in subsection (4)(b)(i) after the words “capital profits” there shall be inserted the words “otherwise than by way of the redemption or purchase of any of the company’s own shares in accordance with section 160 or 162 in Chapter VII of Part V”.
3 
In section 266 of the 1985 Act (meaning of “investment company”)—
(a) in subsection (2)(c), after “that” insert “subject to subsection (2A),” and
(b) after that subsection insert—“
(2A) An investment company need not be prohibited by its memorandum or articles from redeeming or purchasing its own shares in accordance with section 160 or 162 in Chapter VII of Part V out of its capital profits.”.
4 
Section 265(4) of the 1985 Act shall apply in relation to any part of a relevant period (as defined in section 265(5)) which falls before the date of coming into force of these Regulations as if the amendment to that section effected by regulation 2 above had not been made.
Kim Howells,
Parliamentary Under-Secretary of State for Competition and Consumer Affairs,
Department of Trade and Industry
7th October 1999