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The Pamphlet Collection of Sir Robert Stout: Volume 7


page 39


120. All dividends on shares shall be declared by

Dividends—declaration, and source of.

General Meetings, and shall be made only out of the net profits of the Company.
121. But in order to the equalisation of dividends,

Payment of out of Reserve Fund.

payments may from time to time be made according to these presents out of the Reserve Fund, provided full provision has first been made for the depreciation which may have taken place on cost price of all ships or vessels owned by the Company.
122. The net profits of the Company shall be the

Net profits.

sum declared to be such by the Board.
123. Before declaring the net profits, the Board

Provision for Reserve Fund, Contingent liabilities &c., before declaration of dividend.

shall set apart such sum or sums as shall be carried to the Reserve or Depreciation Funds, under Article 118, or as in their judgment may be necessary to meet any claim or contingent liabilities against the Company, and shall provide for all repairs, outfits, insurance premiums, and other necessary expenses.
124. The net profits of the Company shall, after

Appropriation of net profits.

providing for interest on borrowed capital, be appropriated as follows:—
  • To the payment of dividend on the capital, and the ultimate surplus (if any) as a General Meeting shall direct.
125. No larger dividend shall be declared than is

Power of Board and General Meeting as; declaration of dividend.

recommended by the Board. But a General Meeting may, if they think fit, declare a smaller dividend, subject, however, and without prejudice to a preferential or guaranteed dividend.
page 40

Half-yearly dividend.

126. When, in the opinion of the Board, the profits of the Company permit, there may be a dividend every half-year; and in order thereto, a half-yearly dividend in the year may be declared and paid by the Board by way of dividend on account.

Dividend to be paid in proportion to amount paid on each share.

127. If a larger amount is paid up on some shares than on others, the dividend shall be paid in proportion to the amount paid up on each share.

How dividends are to be paid.

128. Every dividend on registered shares forthwith after it is declared may be paid by cheques or warrants, to be sent by post, at the risk of the Shareholders, to their registered addresses.

Dividends payable to Registered Share-holders only.

129. All dividends upon registered shares shall belong and be payable to the Registered Shareholders who shall be upon the Register of Members on the day the resolution declaring such dividend shall be passed, without reference to whether they shall have been or shall be the holders of their shares at any other time whatever.

Dividends of Debtor to Company to be applied in payment of debt.

130. When any Registered Shareholder is in debt to the Company, all dividends payable to him, or a sufficient part thereof, may be applied by the Company in or towards satisfaction of the debt.

Unpaid dividends not to bear interest.

131. Unpaid dividends shall never bear interest as against the Company.