Nondistributable

Nondistributable is an adjective used to describe something that cannot be distributed or shared beyond defined limits, whether by law, contract, policy, or practical restrictions. The term is formed from the prefix non- and the word distributable, and is used across different fields to signal restricted distribution.

In corporate finance and accounting, nondistributable reserves or profits are amounts that statutes, regulations, or governance rules require to be retained rather than paid out to shareholders. Such reserves may be necessary to meet capital requirements, fund future obligations, or comply with regulatory directives. The designation indicates that a portion of earnings is not available for distribution.

In information governance, software licensing, and data management, nondistributable content refers to materials that may not be redistributed beyond authorized recipients or uses. This can include confidential or proprietary data, restricted software, or license terms that prohibit redistribution. Nondistributable labeling helps enforce access controls and compliance with licenses and confidentiality agreements.

In legal and regulatory contexts, nondistributability often arises from export controls, embargoes, or end-user restrictions that limit distribution to certain countries, organizations, or individuals. Contracts and licenses frequently specify nondistributable components to protect intellectual property, security, or public policy objectives.

Notes: spelling variants include nondistributable and non-distributable; both are used, though some domains favor one form. The core meaning remains the same: distribution is restricted to meet legal, contractual, or policy requirements.