THE PACIFIC CABLE

Taranaki Daily News, 27 November 1926, Page 22

THE PACIFIC CABLE

REARRANGEMENT OF THE BOARD. By Telegraph—Press Assn. —Copyright. London, Nov. 24. The Imperial Conference report on the reorganisation of the Pacific Cable Board provides that the British representation on the board of seven shall be reduced from three to two, the board, 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 shall be increased to eight, the chairman f° have a casting vote. The chairman’s minimum salary shall be £lOOO and each member’s salary £3OO. It is required that at the beginning of the 19’27-28 year the board shall devote to the reserve fund 10 per cent, of the net profits, or £lO,OOO, whichever is the greater, or the whole profits if they do not exceed £lO,OOO, such fund to be usable for repairs, extensions or meeting annual deficits.

It is also provided that the surpluses for the two financial years beginning April 1, 1927, shall be divisible among the partners, and thereafter be divisible into two equal parts, one of which is to le handed over to Britain in repayment of the* outstanding capital, and the other part is to be divisible as profits among the partners. This arrangement continues till all the outstanding capital has been repaid to Britain; thereafter the surpluses are divisible as partners’ profits. Proposals for material extensions, large new expenditure or involving a change of the board’s statutory position shall be referred to the partner Governments.