The East Surrey Water Order 1987

Maximum rates of dividend

3.—(1) The Company shall not in respect of any year pay dividends on their paid up share capital at rates greater than the following—

(a) on capital subscribed before the date of commencement of this Order, the rates which they were empowered to pay immediately before that date;

(b) on capital subscribed during the initial period, 10 per cent., or such higher rate not exceeding 12 per cent. as the Secretary of State for the Environment may allow;

(c) on capital subscribed after the initial period, 7 per cent., or such higher rate not exceeding 12 per cent., as the Secretary of State for the Environment may allow.

(2) The Company shall be entitled to pay a dividend on ordinary capital at rates greater than those mentioned in paragraphs (b) and (c) of subsection (1) to make up deficiencies in previous dividends, but as respects the ordinary C stock of the Company and as respects ordinary capital created and issued after the commencement of the East Surrey Water Order 1953(1) this subsection shall apply only in relation to deficiencies arising during the five years preceding the year in respect of which a dividend is being paid.

(3) In this section the “initial period” means the period of five years beginning with the date of commencement of this Order.

(1)

S.I. 1953/473.