The Nova Scotia Reports Volume 38 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1906 edition. Excerpt: ...property of the company, such as 'stores on hand, '-cash in bankers hands, ' and other entries appearing on the several balance sheets." The learned judges throughout used the expressionr " reserve funds" in respect to those assets, I also refer to Bouch v. Sproulc, 12 App. Cas. 385, where the same expression is used although the assets were not invested. Re Home J: Co., Limited, (1904) 2 Ch. 214, Romer, L. J., said: "But in this case the company did what they had power to do, and what is often done in similar cases, namely, they did not set apart special assets to represent the reserve fund, but they allowed the matter to rest in account, and the assets generally to be dealt with by the company in the ordinary way of business, whether those assets might be said so far to represent the reserve fund, or whether they represented the capital account and the other liabilities of the company." It is true Vaughan Williams, L. J., avoided using the expression " reserve fund," but conceded that these undrawn profits were to be dealt with in the same way as if they had been invested. I also refer to Earle v. Bu/rlrmd, . 27 Out. App., at 558, Moss, C. J. A. If there are two meanings, one signifying that it is an invested fund, and the other that it may not be an invested fund, in the absence of the plaintiff's testimony that he understood it in the former sense, we ought not to give effect to his contention. Smith v. Chadwick, 9 App. Cas. 187. I think, moreover, that even if he did understand it to be invested this would hardly be considered a material representation, particularly where it was a manufacturing company, I mean a representation which would influence the conduct of the plaintiff...