CO129-525-12 Transfer of Government wireless services to imperial and international communications Ltd 20-3-1930 - 7-1-1931 — Page 36

38

Authorised

dividend and disposal of surplus

profits.

Revision of rates,

of the Company: (7) depreciation of buildings, plant, apparatus and other property of the Company and

:

(8), the appropriation of

authorised sums to Reserve.

(2) The amount to be written off or provided annually for depreciation shall not exceed ten per cent of the cost of the Company's plant and equipment other than land and buildings. The depreciation on land and buildings shall be such a suni or sums as shall be fixed by an architect approved of by the Director and the Company.

(3) The Company shall be entitled to appropriate annually to Reserve a sum not exceeding fifty thousand dollars, and the Company shall (save that it cannot capitalise the same without the previous consent of Legislative Council) have power to deal with the Reserve in such manner as it shall think fit.

(4) The cost of making provision for the maintenance of an efficient service shall not include any sums expended on works where such expenditure is in the nature of capital outlay.

(5) Notwithstanding that in any year or other account- ing period no allowance or a less allowance than that hereinbefore authorised shall have been made for deprecia- tion or appropriation to Reserve, it shall not be lawful for the Company to make in any succeeding year or accounting period any greater allowance for those purposes than that

hereinbefore authorised.

36. 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 aunum :

(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 Company shall be paid as to one-half thereof by way of increase of dividends to the shareholders of the Company 'aud 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 such revised rates as are hereinafter 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 sub- scribers, so that the maximum dividend payable to the shareholders shall under no circumstances whatever exceed fifteen per ceut 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 substituted. (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 disposal or division or as to their proper application for the reduction of rates payable by subscribers shall be referred to arbitration under the provisions of section 49.

37. It shall be lawful for either the Government or the Company from time to time to require from the other of them the revision of the rates of subscription set forth in the Schedule or for the time being in force, provided that after the first revision of rates there shall be a minimum uterval of two yours between every subsequent revision of

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