Bill,
Clause.
6
2
Table of Correspondence,—Continued.
Ordinance No. 9 of 1925,
section.
5
36
37
Remarks.
This clause replaces a section which dealt with excess profits as follows:-
The net profits of the Company as defined in section 35 shall be dealt with in the following manner namely:
(1) In payment of a dividend on the paid-up capital for the time being of the Company which (save as in the next sub-section provided) shall not exceed twelve per cent. per annum.
(2) If the net profits be such that a larger dividend than twelve per cent. per annum on the paid-up capital for the time being of the Company could be paid, the sum representing an amount not exceeding a further six per cent. per annum upon the paid-up capital for the time being of the Com- pany shall be paid as to one-half thereof by way of increase of divi- dends to the shareholders of the
Company and as to the balance thereof be set aside for the benefit of subscribers by way of reduction of the rates set out in the Schedule, or in such revised rates as are herein- after provided for, and any further profits in excess of the said further six per cent. per annum shall be applied by the Company solely for the reduction of the rates payable by subscribers, so that the maximum dividend payable to the shareholders shall under no circumstances what- ever exceed fifteen per cent. per annuin upon such paid-up capital as aforesaid.
(3) The rate of dividend shall not be increased by the payment of any bonus or by any other colourable means of increasing the dividend, nor shall any other shares or class of shares bearing or capable of bearing a higher rate of interest be sub- stituted".
(4) Any dispute which may arise under section 35 or under this section as to the amount of the net profits of the Company or as to their dis- posal or division or as to their proper application for the reduction of rates payable by subscribers shall be re- ferred to arbitration under the provi- sions of section 49.
The repeal of the final paragraph of section 37 is necessitated by the new provisions of section 36. The repealed paragraph stated—
51