PACIFIC CABLE

Poverty Bay Herald, Volume LII, Issue 16200, 25 November 1926, Page 7

PACIFIC CABLE

BOARD REORGANISED RESERVE FUND CREATED DISPOSITION OF SURPLUSES (Elec. Tel. Copyright-United Press Assn.) (Australian and N.Z. Cable Association.! (Received November 25, 11 a.m.) * LONDON, Nov. 24. The Imperial Conference’s report on the reorganisation of the Pacific Cable Board provides that British representation on the board of seven be reduced from three to two. The board, and not Britain, is to appoint tlie (hairman by a majority vote for a form of three years. If he is not a member of the board the latter’s number will be increased to eight, the chairman to have a casting vote. The chairman’s salary is to be not less than £IOOO, and each member is to receive £3OO.

It is required that at the beginning of the 1927-28 year the board shall devote to a reserve fund ten per cent, of the net profits, or £IO,OOO, which ever is the greater, or the whole profits if they do not exceed £IO,OOO, such fund fn be useable for repairs or extensions, or for meeting animal deficits.

li is also provided that- tlie ampin,sea for the two financial years beginning April 1, 1027, be divisible among the partners, and thereafter be divisible into two equal parts, one of which is to be handed over to Britain, in repayment of outstanding capital, and the other part, is to be divisible as profits among the partners. This arrangement continues til! all the outstanding capital lias been repaid to Britain, 1 hereafter surpluses are divisible as partners’ profits. Proposals for material extensions, large new expenditure, or involving a change of the hoard’s statutory position shall lie referred to the partner Governments.