STAMP DUTIES

Evening Post, Volume CVIII, Issue 96, 20 October 1924, Page 6

STAMP DUTIES

RESPECTING COMPANY DE4LINGS.

I A case of considerable importance to .companies and the legal profession came before the Appeal Court this morning/ the case being stated by the Minister jot istamp Duties, who was cited as the I respondent. The appellant was the Ura.pery and General Importing Comipany, Ltd., more generally known xas ! the D.I.C. Mr.' C. P. Skerrett, K.C., and Mr. Johnson represented the company, and. Mr. A. Fair, the Minister. The main question' was:—;'lf a company, pursuant to the provisions of its memorandum of association, divides itsasserts, or part, in special or kind, amongst its shareholders in accordance with their interests in shares, of the company, are the instruments to give effect to such division liable to stamp duty as on a conveyance of sale?" The claim was one of £580 made by tho Minister of Stamp Duties, and concerned a transaction :by which the D.I C. bought out George and Kersley, Ltd. Subsequently the liquidator for "George and Kersley, Ltd,, transferred-the land shares held by them to the D.I.C. The question was \ whether this transaction was a sale by George and Kersley, Ltd.. on which the D.I.C. would have to pay stamp duty. The consideration for the land was £58,000. The D.I.C. is a public company, and George and Kersley, Ltd.," was a "private company. The D.I.C. purchased the shares of George and Kersley, Ltd., in their Wellington and Wanganui businesses for £146,698, the shares being transferred to nine persons nominated by the company, and later to the company. After hearing legal argument, the Court reserved decision.