Article 3 Maximum rates of dividend

For section 5 of the 1983 order (maximum rates of dividend) there shall be substituted the following section —

“5

(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 entitled to pay thereon immediately before that date;

(b)

on ordinary capital —

(i)

during the initial period, 10 per cent, or

(ii)

thereafter 7 per cent or such higher rate not exceeding 10 per cent as the Secretary of State may approve;

(c)

on preference capital —

(i)

during the initial period, 12 per cent, or

(ii)

thereafter 7 per cent or such higher rate not exceeding 12 per cent as the Secretary of State may approve.

(2)

The Company may pay a dividend on ordinary capital at rates greater than those mentioned in subsection (1) to make up deficiencies in previous dividends arising —

(a)

in the case of the stock referred to in section 5(1)(a) and (b) of the 1973 Order, at any time;

(b)

in the case of any other ordinary capital, 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 5-years beginning with 13th May 1988.”.