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TMI Blog1941 (4) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... h it required for its ordinary work. Accordingly, in 1935, it purchased a tinplate works at Neath, known as the Eagle Tinplate Works, from Baldwins, Ltd. In the same year it formed a subsidiary company called the Eaglesbush Tinplate Works Ltd., to take over the work and the manufacture of tinplate. The Case states that it was then "recognised by the company that the starting up and management of the Eaglesbush Company would involve additional work by the respondent and by another director of the company, a Mr. Rankin." It was suggested by the respondent that he and Mr. Rankin "should receive from the company as additional remuneration for such work a percentage of profit calculated by reference to the profits which the Eagles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow and Mr. Rankin in 1935, under which they were responsible for the management of Eaglesbush Tinplate Works on behalf of the Company, and for these additional services they were to be paid a percentage of the profits accruing to the Company as a result of the said business for the period from 1935 expiring 31st December, 1945. It was now felt that an agreement on those lines was not in the best interests of the Company, and it was decided that the Chairman see Mr. Barlow and Mr. Rankin in an endeavour to make terms for the cancellation of the agreement on the lines of a payment to cover their services up to the present, and a lump sum payment as compensation in full satisfaction of all claims for loss of their right to future remuneration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... half of the Company. And whereas the Company have requested Mr. Barlow and Mr. Rankin to accept (and Mr. Barlow and Mr. Rankin are willing to accept) as remuneration for their services under the said agreement for the period down to the date of these presents the sum of £ 500 each. And whereas the Company desires to determine the said agreement as from the date of these presents and is willing to pay to Mr. Barlow and Mr. Rankin (and Mr. Barlow and Mr. Rankin are willing to accept) the sum of £ 4,000 each as compensation for the loss of their right to remuneration as from the date of these presents under the said agreement. Now this agreement witnesseth as follows" first, that the £ 500 is to be paid, and in paragraph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Commissioners were right in their decision and were entitled to assume that whether or not Mr. Barlow was performing any of the services in connection with the Eaglesbush Company which he had performed, he was not under any obligation to do so, and that therefore, in the circumstances of this case, the £ 4,000 which was paid to him was properly treated as compensation for loss of his office as manager of the Eaglesbush Company, which was a source of income to him and was therefore a capital asset. But Mr. Hills and the Attorney-General, in reply, have contended that there is nothing in the circumstances which I have stated, or in the documents, which in any way indicates that Mr. Barlow was not obliged to continue his service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sum of £ 4,000 for compensation for loss of his right to remuneration, there could rest upon him thereafter no obligation to perform his services in connection with the Eaglesbush Company and such services could not be any part of the consideration for the payment of that sum. That appears to me to be exactly the view which the Commissioners have taken of the circumstances of the agreement in this case. I am therefore of opinion that this sum of £ 4,000 is to be regarded as a sum of money which was not provided for and not paid under the contract which Mr. Barlow made with the Metal Box Company at the time of the inception of this new venture with the Eaglesbush Company, and was not paid in consideration for services rendered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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