# The North Surrey Water Order 1988, 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.”.

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Source: https://www.legislation.gov.uk/uksi/1988/861/article/3 (the official version)
Page: https://openlegislation.uk/north-surrey-water-order-1988/article-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.