Fixed and circulating. —The distinction between fixed and circulating capital is very important. It is not necessary to make good out of the income of a company any loss or depreciation of its fixed capital ; but it is so necessary in respect of circulating capital. Fixed capital would include even so wasting an asset as a leasehold quarry, or the horses of a delivery van. Circulating capital would include such a merchantable asset as stone already quarried and available for sale, or a piece of merchandise such as the above mentioned vans could carry. See hereon PROFIT AND LOSS.
Reduction, and increase of capital. general a reduction of capital requires the sanction of the Court. An increase does not, but certain notices must, under pain of penalties, be given to the Registrar of companies. Re-organisation, such as by consolidating shares of different classes, or dividing shares into shares of different classes, requires a special resolution confirmed by order of the Court. On a proposal to reduce, the creditors have a right to object, and objecting creditors who should be settled with must be settled before the Court will make the order. So, in applying for a confirmation there must be no concealment from the Court of the names of creditors. The order may make it a term that the words " and reduced" be added to the word " limited" in the name of the company, and also that the reasons for the reduction shall be pub lished. Sanction is not required where the company can effect reduction by accepting a surrender of shares, or by forfeiture for nou-payment of calls, or by devoting an accumulation of profit to the all-round amortisa tion of fully-paid shares, or by cancelling shares which have not been taken or agreed to be taken. Should the articles not contain any power to reduce,
two special resolutions must be passed, one to authorise the reduction, and the other to effect it.
• No special power is necessary to authorise an increase of capital, but it is sometimes found convenient to vest in the directors an absolute power and discretion in the matter. See CALLS ; COMPANIES ; CON TRIBUTORIES ; SIIARES.
CARDS.—There is a duty of three shillings per dozen packs upon playing cards imported into the United Kingdom. Such cards are sold in the United Kingdom subject to the same restrictions as those not made abroad. A maker in the United Kingdom requires an annual licence of LI, and must pay a stamp duty of threepence per pack of fifty-two cards. The following are not subject to the stamp duty : Imported duty-paid cards ; toy cards not longer than I in. and wider than I in. ; cards resold after use to a licensed maker, unless they are resold by him. Any person, other than a maker, may sell playing-cards without a licence ; but cards so sold must have the duty denotes on the wrappers. Cards made in the United Kingdom can only be sold in separate packs, enclosed in wrappers printed with the maker's name and showing the stamp, and so securely fastened as to make opening impos sible without destruction of the wrappers. The seller must cancel the maker's name before delivering the cards, unless he sells wholesale with a to selling again, and not for use.