The Australian Law Times Volume 29

The Australian Law Times Volume 29

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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1908 edition. Excerpt: that case was that under such a power the company were authorized and entitled, if they thought fit, to capitalise the reserved fund, and, as was done in this case to apply a portion of the net earnings during the half-year to necessary works, and issue new shares to represent the moneys so applied, the dividend being declared out of the remaining portion of the earnings of the company. I must, therefore, treat this as an authority that under such a provision the company would be empowered to deal with this reserved fund as a capital fund, if they thought fit." I have examined the case referred to by Kay, J., and find it amply supports the statement there made. Wood, V.C., says (L.R. 5 Eq., at p. 243): " I think I must hold that the additional shares were made capital, and that I must treat them as such, and that they go in augmentation of the stock. As long as the com pany have the profit of the half-year in their hands, it is for them to say what they will do with it, subject, of course, to the rules and regulations of the company." I am, therefore, satisfied that this caee is within that rule or principle by reason of article 108 of the Articles of Association which provides that "The directors may before recommending any dividend set aside out of the said profits of the company such sum as they may think proper as a reserve fund to meet contingencies, or for equalising dividends or for paying a dividend, if the profits shall be insufficient for that purpose or if there shall be no profits, or for extending and improving the company's business, and shall invest the sum so set apart on first mortgages of real estate in any of the Australasian colonies, or in Government debentures, or in Government stocks or funds...
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Product details

  • Paperback | 358 pages
  • 189 x 246 x 19mm | 640g
  • United States
  • English
  • black & white illustrations
  • 1236985001
  • 9781236985002