27
14
No. 9 of 1925.
TELEPHONE.
TELEPHONE,
No. 9 of 1925.
15
Authorized
dividend
and disposal of surplus
profits.
+
Schedule.
sums as shall be fixed by an architect approved by the Director and the company.
(3) The company shall be entitled to make annual appro- priations to reserve, No such annual appropriation shall exceed the sum of one hundred and seventy thousand four hundred and eighty-two dollars. The company shall have the power to deal with the reserve in such manner as it may think fit, save that it shall not capitalize the same without the previous consent of the Legislative Council.
(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 accounting period no allowance or a less allowance than that hereinbefore authorized may have been made for depreciation 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 authorized:
Provided always that nothing in this section shall be deemed to authorize the inclusion of accounts in respect of any trunk line service opened by the company without the written sanction of the Governor in Council or in respect of any trunk line service which in the opinion of the Governor in Council is not being managed, worked or conducted satisfactorily.
39. The net profits of the company as defined in section 38 shall be dealt with in the following manner, namely—
(a) in payment of a dividend on the paid-up capital for the time being of the company which, save as provided in paragraph
(b), shall not exceed twelve per cent. per annum ;
(b) 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 as to one-half thereof be paid by way of increase of dividends 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 such revised rates as are herein-
As amended by Law Rev. Ord., 1939, Supp. Sched.
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 in no circumstances whatever exceed fifteen per cent. per annum upon such paid-up capital as aforesaid;
(c) the rate of dividend shall not be increased by the pay- ment 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:
(d) any dispute which may arise under section 38 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 applica- tion for the reduction of rates payable by subscribers shall be referred to arbitration under the provisions of section 52.
40. It shall be lawful for either the Government or the com- Revision of pany from time to time to require from the other of them the rates, revision of the rates of subscription and other charges set forth
*
in the Schedule or for the time being in force: Provided that Schedule. there shall be a minimum interval of two years between every revision of rates: Three months' previous notice in writing of such requirement shall be given by the party requiring revision to the other party and thereupon, and in default of agreement between the parties with regard to such revision, the matter shall be referred to arbitration in accordance with the provisions of section 52. Either of the parties shall be entitled to place before the arbitrators any evidence which such party thinks fit relative to the subject of such application, and the arbitrators shall be entitled to require the company to produce such books as may be necessary and to require an investigation of and report upon the company's affairs to be made and prepared, at the cost of such party as may be decided by the arbitrators, by such independent auditor as the arbitrators may think fit.
If the arbitrators are of opinion that the then existing charges for subscriptions are insufficient to make provision for the maintenance of an efficient service and for the payment for the time being of a dividend of eight per cent. per annum on
*
As amended by No. 9 of 1930 [15.8.30] and Law Rev. Ord., 1939,
Supp. Sched.
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