COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 65 Power of company to pay interest out of capital in certain cases.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 65

Power of company to pay interest out of capital in certain cases.

65.(1) Where any shares of a company are issued for the purpose of raising
money to defray the expenses of the construction of any works or buildings or
the provision of any plant which cannot be made profitable for a lengthened
period, the company may pay interest on so much of that share capital as is
for the time being paid up for the period and subject to the conditions and
restrictions in this section mentioned, and may charge the sum so paid by way
of interest to capital as part of the cost of construction of the work or
building, or the provision of plant, so, however, that

(a)no such payment shall be made unless it is authorised by the articles or by
special resolution;

(b)no such payment, whether authorised by the articles or by special
resolution, shall be made without the previous sanction of the Ministry;

(c)before sanctioning any such payment the Ministry may, at the expense of
the company, appoint a person to inquire and report to it as to the
circumstances of the case, and may, before making the appointment, require
the company to give security for the payment of the costs of the inquiry;

(d)the payment shall be made only for such period as may be determined by the
Minstry, and that period shall in no case extend beyond the close of the half
year next after the half year during which the works or buildings have been
actually completed or the plant provided;

(e)the rate of interest shall in no case exceed four per cent. per annum or
such other rate as may for the time being be prescribed by orders made by
the Ministry of Finance;

(f)the payment of the interest shall not operate as a reduction of the amount
paid up on the shares in respect of which it is paid;

Para.(g) rep. by 1978 NI 12 art.153(2) sch.7

(2) Orders made under this section by the Ministry of Finance shall be subject
to negative resolution.

Special resolution for reduction of share capital.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 65