PACIFIC CABLE BOARD TO BE REORGANISED.

Star (Christchurch), Issue 18013, 25 November 1926, Page 6

PACIFIC CABLE BOARD TO BE REORGANISED.

IMPERIAL CONFERENCE REPORT PUBLISHED. By Telegraph. —Press Assn.-—Copyright Aus*. and N.Z. Cable Association. (Received November 25, 8.55 a.m.) LONDON, November 24. The Imperial Conference’s report on the reorganisation of the Pacific Cable Board provides that British representation on the board of seven will be reduced from three to two, the board and not Britain to appoint the chairman by a majority vote for a term 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 fixed at a minimum of £IOOO, and of each member £3OO. It is required that at the beginning of the 1927-28 year the board shall devote to a reserve fund 10 per cent of the net profits, or £IO,OOO whichever is the greater, or the whole profits if they do not. exceed £IO,OOO, such fund to be useable for repairs, extensions or meeting annual deficits. It is also provided that the surpluses for the t.Wo financial years beginning April 1, 1927, will 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 part is to be divisible as profits ainong the partners. This arrangement will continue till all the outstanding capital has bee.fi repaid to Britain, and thereafter the surpluses are divisible as partners’-profits. Proposals for material exterisions, large new expenditure or action Involving. a change of the board’s statutory position shall be referred to the partner Governments.