Burton (Montague) Ltd v IRC (1936) [1936] UKHL TC_20_48 6 February 1936
All the ordinary shares issued by the Appellant Company (except one) were held directly or indirectly by M.B., to whom the Company advanced large sums of money for the acquisition of shop properties required by the Company for its business, which was rapidly expanding. During the year ended 31 st March, 1929, the Company expended on the business and advanced to M.B. sums much in excess of the net profits of the year, which amounted to £371,328. In February, 1929, a new public company was incorporated which acquired, in consideration of the allotment of shares, the business of the Appellant Company and its assets (excluding the loan to M.B.) and liabilities as at 31 st March, 1928.
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