(1) Where immediately before the appointed day a company is authorised by any provision of its articles to apply its unrealised profits in paying up in full or in part unissued shares to be allotted to members of the company as fully or partly paid bonus shares, that provision shall, subject to any subsequent alteration of the articles, continue to be construed as authorising those profits to be so applied after the appointed day.
(2) In this Part "distribution" means every description of distribution of a company's assets to members of the company, whether in cash or otherwise, except distributions made by way of - (a) an issue of shares as fully or partly paid bonus shares; (b) the redemption of preference shares pursuant to section 65 of the Principal Act out of the proceeds of a fresh issue of shares made for the purposes of redemption; (bb) the redemption or purchase of shares pursuant to Part XI of the Companies Act, 1990 out of the proceeds of a fresh issue of