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TMI Blog1957 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... y applied these words to the facts of this case. The commissioner took the view that there was no direction in these words to take capital losses into account. The Court of Appeal thought that there was. It will be seen from what follows in this judgment that a decision upon this point was not necessary to the decision of this case. It appears from the statement filed with the memorandum of appeal and from the judgments in the courts below that before the High Court (and presumably before the commissioner and the Local Committee) the respondent relied upon a balance sheet and a profit and loss account for the year ending December 31, 1950, to establish that the company had suffered loss and that therefore it was unreasonable to pay a div ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Additions during year 451.05 20,769.66 Less: Loss Claims Nos. 7588/89, 7592 and 7594 abandoned 4,000.00 Amount w/off ... 11,769.66 15,769.66 5.000.00 It was agreed in the courts below that the sum of 1,174,935 shillings shown in Development No. 1 Account had to be written off completely as the mine to which it related was a failure. This was the only material relied on by the respondent to establish his c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material it chose to rely upon, if, as ordered by the Court of Appeal, it is sent back for a second decision by the commissioner. It was argued that some losses were established and that therefore it was for the commissioner to find out for himself whether there had been compensating gains. Their Lordships do not think that there is anything in the language of the Ordinance which casts any such duty upon the commissioner. It would, moreover, be in the generality of cases, a task, which a person with the limited knowledge of the affairs of a company which can be imputed to the commissioner, could not efficiently perform. It is, for the reasons already given, unnecessary for their Lordships to decide whether the commissioner should und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irness. It does not follow from what has been said that capital losses should not be taken into account by the commissioner. Two matters are mentioned specifically in the words which give him a direction, the first is losses (as interpreted above) and the second is smallness of profits . The commissioner is directed to come to a decision upon the question whether the payment of a dividend or a larger dividend than that declared is unreasonable. The form of the words used no doubt lends itself to the suggestion that regard should be paid only to the two matters mentioned, but it appears to their Lordships that it is impossible to arrive at a conclusion as to reasonableness by considering the two matters mentioned isolated from oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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