1953 (9) TMI 3

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....ies Act with the following objects, among others, set out in the memorandum of association :--- " To carry on and undertake any business, transaction, operation or work commonly carried on or undertaken by bankers, capitalists, promoters, financiers, concessionaires, contractors, merchants, managers, managing agents, secretaries and treasurers. To purchase or otherwise acquire, and to sell......... stock, share ..... ...business concerns and undertakings. To invest and deal with the moneys of the company not immediately required for the company's business upon such securities and in such manner as may from time to time be determined." The company held a large number of shares in other incorporated companies and was realising som....

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....hares were acquired by the appellant company in the ordinary course of its business and they became its stock-in-trade. The profit on sale of these shares did not essentially arise out of the sale of investment of any surplus funds. It is, therefore, clear that the sale of investments and making of fresh investments are linked up with the business of the company as financiers, inasmuch as investing and realising its holdings when finances were needed is part of the normal business of the company......... There is ample evidence to show that the company did in fact carry on the business of financiers, which is one of the objects mentioned in clause 3(1) of the memorandum of association. The evidence pertaining to the financial transactions o....