Undistributable Reserves

Business, Legal & Accounting Glossary

Definition: Undistributable Reserves


Undistributable Reserves

Quick Summary of Undistributable Reserves


Undistributable Reserves (also known non-distributable profit) are reserves that may not be distributed according to the Companies Act.




What is the dictionary definition of Undistributable Reserves?

Dictionary Definition


Undistributable Reserves (also known as Capital Reserves) are reserves that may not be distributed as per rules/regulations laid out in the Companies Act.

These reserves often include items such as share capital, share premium accounts, capital redemption reserves, certain unrealised profits, or any other reserve that a company may not distribute for any given reason, whether that be due to a Legal Act or due to its own constitutional documentation.

Within the US, such reserves are known as Restricted Surplus items.


Full Definition of Undistributable Reserves


Undistributable Reserves refer to reserves that may not be distributed according to the Companies Act. These include share capital, share premium account, capital redemption reserve, certain unrealised profits, or any other reserves that the company may not distribute according to some other Act or its own constitutional documents. In the USA such reserves are known as restricted surplus.


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Definition Sources


Definitions for Undistributable Reserves are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th November, 2019 | 0 Views.