376 SECRETARIAL PRACTICE

Adjudication
Stamp.

consideration, whilst if the transfer is made by way of gift
inter vivos the ad valorem duty is payable on the value of the
property transferred. In the case of Maynard v. The
Consolidated Kent Collieries Corporation, Lid. [(1903), 2 K.B.
121, it was held that for the purpose of determining whether
a transfer on a sale of shares presented to a company for
registration was duly stamped the directors were entitled
to go behind that which appeared on the face of the document
so as to ascertain whether the consideration stated therein,
and in respect of which the transfer was duly stamped, was
less than the actual consideration which had been given,
and that unless they were satisfied as to the sufficiency
of the duty paid the directors were entitled to refuse regis-
tration. A similar refusal on the same grounds was upheld
in a previous case [Flessig v. Harmony Proprietary Company,
Lid.], which came before Mr. Justice Kekewich on January 18,
1899.

It is provided by sub-s. (2) of s. 74 of the Finance (1909-10)
Act, 1910, that no transfer made by way of gift inter vivos
shall be deemed to be duly stamped unless an adjudication
stamp has been obtained, and accordingly the secretary or
registering officer of a company is in a position to refuse to
register such a transfer unless it bears an adjudication
stamp; but if the transfer is stamped with ad valorem duty
upon the market value of the shares or stock or securities
transferred, there will be practically no risk in accepting the
transfer for registration without the adjudication stamp
being impressed thereon, and the Commissioners of Inland
Revenue have by notice definitely stated that they will not
object if registering officers think fit to register transfers of
stock or marketable securities which admittedly operate as
voluntary dispositions -¢nfer vivos and are stamped with ad
valorem duty upon the market value of the stock or securities
at the date of the instrument without insisting upon ad-
judication. It will be open to the registering officer to obtain
the adjudication stamp subsequently if any necessity for
this course should arise; but such a necessity could hardly
arise unless the production of the transfer were required as
evidence before a Court in some civil proceeding.

It is by no means easy for a registering officer to determine
the particular circumstances under which a transfer is made;
but where a transfer is made for a nominal consideration,
he should require information to be given to him as to the
facts relating to the transaction, and if the information is
not furnished, or is not sufficient to enable him to satisfy
himself as to the proper stamp duty, he should refuse to