DRAFT NOTE,
11
HONG KONG TELEPHONE SERVICE,
Company's rishtë,
1.
Unde Ordinance No. 9 of 1925, as amended, the
Company have sole right to operate telephone system
in Hong ong for 50 years, subject to possible.
extension for another 25 years.
Company's obligations to nubl10.
2. The Company must operate and maintain an efficient
public telephone service. There is no provision
for governmental control over its affairs, but the
Company must be registered locally; its Memorandum
and articles of association are subject to government
approval; it cannot borrow money without government
sanction; its accounts must be audited by government
appointee; and subscription rates are prescribed
by law, but are subject to revision at request of
government or company. Government have option to
purchase the undertaking at end of 50 year franchise.
TO 1940 financial arrangements.
3. rior to the enactment of Ordinance No. 9 of 1940,
the financial interests of the government, the share-
holders and the telephone subsoribers were provided
for as follows:
(a)
(b)
Covernment. Received royalty of 4 per annum
for each line in use.
Shareholders. Minimum dividend of 8% per annum
prescribed. If net profits oxceeded 8%, but
did not exceed 12%, the whole excess was to
go to shareholders.
If net profits exceeded
12, but did not exceed 18%, half this excess
was to go to shareholders.
Maximum dividend
to Shareholders 15% per annum.
/(c)