603585-1940-Supplementary-Bill-read-a-first-time---Telephone-Amendment — Page 3

340

Substitution

for section 36

5. Section 36 of the Telephone Ordinance, 1925,

of Ordinance repealed and the following section is substituted therefor

No. 9 of

1925.

Payment to Government of additional royalty.

Amendment

of Ordinance

is

36.—(1) If after deducting the amount (if any) payable to the Government, by way of taxation on profits, from the net annual profits of the Company, as defined in section 35, and commencing with the financial year 1939, there shall remain a sum greater than 12 per cent. on the paid-up capital for the time being of the Company then there shall be paid to the Accountant-General, as an additional royalty to the royalty laid down in section 7, one half of the surplus of such remaining sum over and above the amount of such 12 per cent.

(2) Any dispute which may arise under section 35 as to the amount of the net annual profits of the Company shall be referred to arbitration under the provisions of section 49.

6. Section 37 of the Telephone Ordinance, 1925, as of section 37 amended by section 8 of the Telephone Amendment Ordin- ance, 1930, is further amended by the repeal of the third amended by paragraph thereof.

No. 9 of

1925, as

section 8 of Ordinance No. 9 of 1930.

Substitution

7. Section 38 of the Telephone Ordinance, 1925, is oction repealed and the following section is substituted therefor—

for section

ance No. 9

of 1925.

Provision

for a service for Government purposes.

Substitution for section

38. The Company shall provide the Government, free of charge, with a telephone service for Government purposes up to 500 lines and shall arrange for the necessary branch exchange to be constructed in a place approved by the Government as sufficiently protected from possible air raid damage. Any telephones or connexions in excess of 500 lines will be paid for by the Government at standard rates of subscription in accordance with the provisions of section 34 less a discount of twenty-five per cent.

8. Section 39 of the Telephone Ordinance, 1925, is 39 of Ordin- repealed and the following section is substituted therefor

ance No. 9

of 1925.

Company to keep and allow inspection

of accounts.

39.-(1) The Company shall keep true and particular accounts of and concerning all matters connected with the concession and shall, on the first day of March in every year deliver to the Accountant-General a statement in writing showing the number of subscribers connected with each exchange and the number of persons who have requested to be supplied with lines during the Company's preceding financial year and also the names and addresses of all persons who have requested to be supplied with lines during the second six months thereof and with whose request the Com- pany has not complied. The Company shall permit the Accountant-General to inspect and take copies of or extracts from the books of account, receipts, papers and documents in the possession or under the control of the Company and relating wholly or in part to the subject matter of this Ordinance.

(2) The Company shall cause all its books of account to be kept in Hong Kong at its registered office.