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FAIRCLOUGH CAPITAL CUT

6th July 1951, Page 30
6th July 1951
Page 30
Page 30, 6th July 1951 — FAIRCLOUGH CAPITAL CUT
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Which of the following most accurately describes the problem?

I N the Chancery Division this week, Mr. Justice Roxburgh confirmed a reduction of the capital of T. M. Fairclough and Sons, Ltd., transport contractors, from E200,000 to £5,500 by returning capital in excess of the wants of the company.

Mr. M. Berkeley, for the company, said that its business had been taken over by the British Transport Commission and the company was being kept alive until its claims for cornpensation had been finally settled. In April, the company had cash at the bank amounting to £335.896 and the Commission had ,since issued British Transport stock for £181,800.

It was proposed to make a repayment of £194,500 partly out of stock and partly out of the proceeds of sale of the Transport stock. There was no prospect of the money which was to be returned being employed in the business in the foreseeable future.