PACIFIC CABLE

Dominion, Volume 20, Issue 53, 26 November 1926, Page 11

PACIFIC CABLE

REORGANISATION OF BOARD BRITISH REPRESENTATION REDUCED ALLOCATION OF PROFITS Br Telegraph.—press Associatios. Copy right. London, November '2l. Ihe report of the Imperial Conference dealing with the reorganisation of the Pacific Cable Board provides for British representation on a board of seven being reduced from three to two. The board, and not Great Britain, will appoint a chairman by majority vote, his term of office being for three years If he is not a member of the board, the latter’s number is increased to eight, the chairman having a casting vote.

The chairman’s salary is made a minimum of £100(1, each member receiving £3OO.

It is required that at the beginning, of 1927-28 the board shall devote to the reserve fund 10 per cent, of the net profits, or £1.0,000, whichever is_ the greater, or the whole of the profits if thev do not exceed £lO,OOO, such fund to be usable for repairs and extensions, or for meeting annual deficits. It is also provided that surpluses for two financial years, beginning on April 1. 1927, shall be divisible among the partners, thereafter being divisible in two equal parts, one of which shall be handed over to Great Britain in repayment of outstanding capital. The other part is divisible as profits among the partners. This arrangement is to continue till all the outstanding capital is repaid to Great Britain, and thereafter the surpluses will be divisible as the partners’ profits. Proposals for any material extensions, any large new expenditure, or involving changes in the board’s statutory position shall be referred to the partner Governments.