HEAD & CO., LTD. v. ROPNER HOLDINGS, LTD.

[1951] 2 Lloyd's Rep. 348

CHANCERY DIVISION.

Before Mr. Justice Harman.

Companies - Share premium account - Amalgamation of shipping companies in holding company - Issue of shares pound for pound - Excess value of assets over nominal issued capital- Balance sheet - Method of showing accounts - Issue of shares "at a premium, whether for cash or otherwise" -Formation of holding company to acquire, for purpose of amalgamation, whole of issued capital of A and B Companies - Distribution of capital profit dividend to shareholders of A Company (having the larger assets) to permit pound for pound issue of shares of holding company to shareholders of A and B Companies-Real value of assets in excess of nominal share value -Excess value of assets over nominal share value set out in balance sheet of holding company under "Capital Reserve, Share Premium Account"- Motion by shareholders in objection - Companies Act, 1948, Sect. 56 (1).