Seán Sherlock (Cork East, Labour) | Oireachtas source

The amendments amend the definition of "distribution" by eliminating as an exception the reduction of the liability of shareholders. The reduction in the liability of shareholders will, therefore, now fall within the definition of a "distribution" and be subject to the normal rules of requiring distributable reserves. This is consistent with section 117(3) which provides that a company shall not apply an unrealised profit in paying up debentures or any amounts unpaid on any of its issued shares.