Government guarantee of a minimum return

Government guarantee of a minimum return.-The conditions of a guarantee by the Government of a minimum return on the whole or part of the capital of a Joint Stock Company shall be-

1. (a) that the industry shall be subject to the conditions of section 26 in respect of inspection, returns and accounts;
2. (b) that a minimum portion of the authorized capital of the industry to be fixed according to the circumstances of each case has been subscribed and paid in cash;
3. (c) that no such guarantee shall in any case extend beyond a period of five years;
4. (d) that during the period to which the guarantee extends, the Government may impose on such persons as it considers to be directly concerned in the promotion of the company, a condition that if they transfer any of their shares without the consent of the Government, they shall be liable jointly and severally to refund to the Government any sums paid to the company in fulfilment of the guarantee: Provided that the sum recoverable by the Government in any one year shall not exceed a sum equal to half the net profits made by the company in the preceding year in excess of the sum required for the payment of interest or dividend at the rate fixed in the agreement.