STAMP DUTIES

357
of the converted and consolidated capital, duty on so
much of the loan capital converted or consolidated as is
shown to the satisfaction of the Commissioners of Inland
Revenue to have been included in the first statement shall
be repayable at 2s. per cent.

The instruments next in importance to secretaries of
companies are the instruments in use in connection with the
business of the company.

An agreement executed under the seal of a company, which
is not otherwise charged with stamp duty, is chargeable in
England with the fixed duty of 10s., but in Scotland is charge-
able with the duty of 64., unless it contains a clause of registra-
tion.

It is not, however, necessary that all agreements with a
company should be under the seal of the company, as the
Companies Act, 1929, provides in s. 29 (1) that ‘a contract
which, if made between private persons would be by law
required to be in writing signed by the parties to be charged
therewith, may be made on behalf of the company in writing
signed by any person acting under its authority, express or
mplied’ and such a contract may in the same manner be
varied or discharged [s. 29 (3)]. A contract by a company
made as provided by this section, being merely an agreement
under the hand of an officer of the company is charged with the
stamp duty of 6d. only. This duty may be denoted by an
adhesive stamp, and there are five exemptions from the duty
of which the first three are important, and are (1) when the
matter of the agreement is not of the value of £5; (2) when
it is for the hire of a labourer, artificer, manufacturer, or
menial servant; and (3) when it is for or relating to the sale
of goods, wares, or merchandise.

The duty on letters of allotment and letters of renunciation Letters of
or any other document having the effect of a letter of allot- Allotment.
ment of shares or loans is 1d. where the nominal amount
allotted is less than £5, and 6d. in other cases. A separate
duty is chargeable in respect of letters of allotment and letters
of renunciation although contained in the same instrument.

The duty on a letter of renunciation, whether charged with
td. or 6d., may be denoted by an adhesive stamp; but im-
pressed stamps are necessary in the case of any other of
these documents, and the stamp must be impressed before
signature.

The duty on an affidavit or statutory declaration is 2s. 64. Affidavits
There are six exemptions from this duty, but the only exemp- and
tion which is important to secretaries of companies is the Staosiory
Exemption No. 2, which, as amended bv s. 6 of the Finance ’