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sums as shall be fixed by an architect approved by the Director and the company.
(3) The company shall be entitled to make annual appropriations 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.
TELEPHONE.
No. 9 of 1925.
1651
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 herein before 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 herein before 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 Authorized 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;
dividend and disposal
of surplus profits.
+
(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- Schedule.
+ As amended by Law Rev. Ord., 1939, Supp. Sched.
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