Agricultural Credit Act, 1929
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Application of the profits of the Corporation. |
8.—(1) If the Corporation shall divide its capital into A shares and B shares under the authority in that behalf conferred by this Act, it shall be lawful for the Corporation so to alter its articles of association that the net profits of the Corporation for the half-yearly accounting period commencing on the 1st day of November, 1928 and every subsequent half-yearly or other accounting period shall be deemed to have been and shall be applicable only for or towards the following purposes in the following order so far as such profits shall extend, that is to say:— | |
(a) firstly, in setting aside such sum as the directors shall think fit, not exceeding in respect of an accounting period ending before the 1st day of November, 1939 one-fifth of the net profits for such period and not exceeding in respect of any subsequent accounting period such proportion as the directors with the approval of the Minister shall think fit of the net profits for such accounting period, | ||
(b) secondly, in paying a dividend at the rate of five per cent. per annum on the amount paid-up on the A shares, | ||
(c) thirdly, in paying a dividend at the rate of five per cent. per annum on the amount paid up on the B shares, | ||
(d) fourthly, in setting aside such sum as the directors shall think fit, not exceeding in any accounting period one-tenth of the balance of the said net profits for such period remaining after making the provisions and payments above-mentioned, | ||
(e) fifthly, in paying such extra dividend or bonus on the B shares as the directors shall think fit, not exceeding in any accounting period such sum as with all sums theretofore paid by way of such extra dividend or bonus will amount to the total of the aggregate of all moneys paid up to the end of such accounting period by the Minister to the Corporation for the purpose of paying dividends on A shares together with the aggregate deficiency below five per cent. per annum of the sums theretofore paid by the Corporation to the Minister in respect of dividends on A shares for the time being held by him together with the aggregate of all moneys theretofore paid by the Minister under any guarantee given by him under section 15 of the Principal Act. | ||
(2) Alterations made by the Corporation in its articles of association under the foregoing sub-section may also provide (in addition to the matters mentioned in that sub-section) that all sums set aside under provisions inserted in the said articles in pursuance of paragraphs (a) and (d) of the said sub-section and also all (if any) profits remaining after making the several provisions and payments mentioned in the said sub-section may be applied in such manner as the directors think fit for any purpose for which profits of the Corporation may lawfully be applied. |