PACIFIC CABLE

New Zealand Times, Volume LIII, Issue 12614, 26 November 1926, Page 7

PACIFIC CABLE

CONTROL REORGANISED BOARD WILL APPOINT CHAIRMAN MINIMUM SALARY FIXED By Telegraph.—Press Assn. —Copyright. Australian and N.Z. Cable Association. LONDON, November 24. The 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 £IOOO, and each member will receive £3OO. It is required that at the beginning of 1927-8 the board shall devote to the reserve fund 10 per cent, of the net profits, or £IO,OOO, whichever is the greater, or the whole of the profits if they do not exceed £IO,OOO, such fund to bo usable for repairs and extensions, or for meeting annual deficits. It is also provided that surpluses for two financial years, beginning on April Ist, 1927, shall be divisible among the partners, and thereafter be 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 tho partners’ profits. Proposals for any material extensions, any large new expenditure, or involving changes in tho board’s statutory position shall be referred to the partner Governments.