Waharaka Investment Co., Ltd. V. Commissioner Of Stamps

1932 Present : Macdonell C.J. and Garvin S.P.J.

WAHARAKA INVESTMENT CO., LTD. v.
COMMISSIONER OF STAMPS.

28 (Inty.)-Appeal under section 32 of Stamp Ordinance.

Stamps-Incorporation of Company-Transfer of shares to Company-Consideration for transfer-Market value of shares-Dtity on instrument- Ordinance No. 22 of 1909, ss. 20 and 22.

A company styled the Waharaka Investment Company was formed, principally for the purpose of acquiring all the interests in Ceylon of one R. D. and was registered on March 15, 1930.

It was part of the arrangement entered into with R. D. upon which the Company was incorporated, that the Directors would not allot any shares in the Company to any persons other than the said R. D. or persons nominated by him, and that upon the application and payment in full by the said R. D. for shares, they would be allotted to him or his nominees.

On March 18, 1930, a resolution was passed at a meeting of the Directors, all of whom were nominees of the said R. D., that they should negotiate for the purchase of the assets, the property of R. D., specified in the resolution for the prices stat

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