George Morton, Ltd Petitioners [1900] ScotLR 37_777 (16 June 1900)
The company is entitled to reduce its capital by the amount lost or unrepresented by available assets, notwithstanding an apparent surplus in the balance-sheet, as the statute authorises such reduction and the surplus is available for dividend, not capital.
- Citation
- [1900] ScotLR 37_777
- Parties
- Petitioner: George Morton, Limited
- Jurisdiction
- Scotland
- Judgment Date
- 16 June 1900
- Procedural Posture
- Petition to Confirm Reduction of Capital / Judgment After Report and Hearing
- Outcome
- Petition granted; reduction of capital confirmed.
- Legal Topics
- Reduction of Capital, Companies Act 1877, Capital Lost or Unrepresented by Available Assets
Case Brief
Summary, issues, holding and outcome
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Parties
George Morton, Limited
Petitioner
Procedural Posture
Petition to Confirm Reduction of Capital / Judgment After Report and Hearing
Legal Issues
- 1 Whether the company may reduce its capital by cancelling shares to reflect capital lost or unrepresented by available assets under the Companies Act 1877, section 3
- 2 Whether the existence of a surplus in the balance-sheet precludes such reduction
Ratio Decidendi
The company is entitled to reduce its capital by the amount lost or unrepresented by available assets, notwithstanding an apparent surplus in the balance-sheet, as the statute authorises such reduction and the surplus is available for dividend, not capital.
Court Disposition
Petition granted; reduction of capital confirmed.
Orders
- Confirm the reduction of capital as resolved by the special resolutions of 22nd March and 21st April 1900.
- Approve the minute set forth in the petition.
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