118. —The Board shall from time to time set apart such sums as in their judgment shall be necessary or expedient for the purpose of forming one or more Reserve or Depreciation Funds, to be at the discretion of the Board applied in equalising dividends, or towards meeting ascertained or contingent claims, or on liabilities of the Company, and for the other purposes of the Company. The sum to be carried to such funds in each year shall not be less than five per cent, upon the paid-up capital at the end of the year, until a General Meeting shall otherwise determine.

119. All moneys carried to any Reserve or Depreciation Fund, and all other moneys of the Company not immediately required for use, may be lodged in deposit as the Board may think fit, or be invested by them in such securities or investments (other than the purchase of shares of the Company) as they from time to time shall think proper; and in any case where they think fit, such deposit or investment may be made in the names of Trustees.