Carruth v Imperial Chemical Industries Ltd The respondent company, which was incorporated with a capital of £95,000,000 consisting of cumulative preference, ordinary and deferred shares, petitioned the court to sanction a reduction of capital to £89,565,859 by cancellation of half the amount of each of the 21,736,564 deferred shares of 10s each, and by conversion and consolidation of each four deferred shares into one £1 ordinary share carrying full dividend rights as from 1 January 1935.