GAS AND ELECTRICITY ACT.
Act No. 42, 1935.
An Act to make better provision for and with
respect to the supply and use of gas and
electricity, the regulation of dividends,
funds, accounts and shares of gas companies
and the charges made for electricity by the
Electric Light and Power Supply
Corpora-tion Limited; to alter the law relating to
the licensing of electrical contractors and
electricians; to make certain provisions in
relation to electricity generating stations,
additional main generating units, and main
transmission lines; to constitute a Sydney
County Council and to transfer the Elec
tricity Department of the Municipal Council
of Sydney to such County Council; to repeal
the Gas and Electricity Act, 1932, the
Electrical Contractors Licensing Act, 1924,
and certain other Acts; to amend the
Local Government Act, 1919, the Sydney
Corporation Act, 1932-1934, and certain
other Acts in certain respects; and for
purposes connected therewith. [Assented
to, 11th April, 1935.]
B
E i t e n a c t e d b y t h e K i n g ' s Most Excellent Majesty, b y a n d w i t h t h e advice a n d consent of t h e Legis lative Council a n d Legislative Assembly of New S o u t h W a l e s in P a r l i a m e n t assembled, a n d b y t h e a u t h o r i t y o£ t h e s a m e , a s follows :—P A R T I .
P R E L I M I N A R Y .
D I V I S I O N 1.—Short title and interpretation.
1. (1) T h i s A c t m a y be cited a s the " G a s a n d Elec
t r i c i t y Act, 1 9 3 5 . "
(2) T h i s Act, w i t h the exception of t h i s D i v i s i o n a n d P a r t V I a n d P a r t X , shall commence on a d a y t o be a p p o i n t e d b y the G o v e r n o r a n d notified b y p r o c l a m a tion p u b l i s h e d in the Gazette, which d a y is in t h i s A c t r e f e r r e d t o a s t h e c o m m e n c e m e n t of t h i s A c t .
T h i s Division a n d P a r t V I a n d P a r t X of t h i s A c t shall commence on the d a y u p o n which t h e a s s e n t of His. M a j e s t y to t h i s A c t is signified.
(3) T h i s A c t is d i v i d e d i n t o P a r t s a s f o l l o w s : — P A R T I . — P R E L I M I N A R Y — s s . 1-4.
D I V I S I O N 1.—Short title and interpretation—ss-1-3.
D I V I S I O N 2.—Repeal and savings—s. 4. P A R T I I . — B O A R D S OF I N Q U I R Y — s . 5.
P A R T I I I . — R E G U L A T I O N S OF GAS C O M P A N I E S — s s . 6 -2 -2 A .
DIVISION 1.—Special provisions applicable to com panies mentioned in Schedule One—ss. 6 - 1 2 .
DIVISION 2.—General provisions applicable to gas companies—ss. 1 3 - 2 2 A .
P A R T I V . — G A S —s s . 2 3 - 3 4 .
DIVISION
1.—Standards of heating power, purity
and pressure of gas—ss. 2 3 , 2 4 .
DIVISION 2.—Gas examiners—s. 2 5 .
DIVISION 3.—General and supplemented—ss. 2 6 - 3 4 . P A R T V . — E L E C T R I C I T Y S U P P L Y — S S . 3 5 - 3 7 .
DIVISION 1.—Regulation of supply and use of elec tricity—s. 3 5 .
DIVISION 2 . — A g r e e m e n t s between councils as to gas and electricity—s. 3 6 .
DIVISION 3.—Main transmission lines, generating stations, etc.—s. 3 7 .
P A R T V I . — S U P P L Y OF ELECTRICITY I N T H E C I T Y OE SYDNEY AND CERTAIN OTHER AREAS—ss. 3 8 - 8 0 . DIVISION 1 . — P r e l i m i n a r y— s s . 3 8 , 3 9 .
DIVISION 2 . — C o n s t i t u t i o n of Sydney County Dis trict—s. 4 0 .
DIVISION 3 . — C o n s t i t u t i o n of Sydney County Coun cil—ss. 4 1 — 4 6 .
D I V I S I O N 4.—Transfer of powers, etc., of The Municipal Council of Sydney and of certain other councils relating to electricity supply, etc.—ss. 4 7 - 5 5 .
D I V I S I O N 5.—Exercise of powers, etc., of Council.—
ss. 5 6 - 7 2 .
DIVISION 6 . — A c c o u n t s and audit—ss. 7 3 - 7 9 . D I V I S I O N 7 . — R e v i s i o n of charges made for elec
tricity by the Electric Light and Power Supply Corporation Limited—s. 8 0 .
P A R T V I I . — E M E R G E N C Y PROVISIONS—s. 8 1 . P A R T V I I I . — G E N E R A L — s s . 8 2 - 8 5 .
P A R T I X . — E L E C T R I C A L CONTRACTORS AND E L E C TRICIANS L I C E N S I N G — s s . 8 6 - 8 8 . P A R T X . — A M E N D M E N T OF SYDNEY CORPORATION A C T , 1 9 3 2 - 1 9 3 4 - s . 8 9 . S C H E D U L E S . 2. ( 1 ) W h e r e the p r o v i s i o n s of t h i s A c t a r e incon s i s t e n t w i t h t h e p r o v i s i o n s of a n y o t h e r A c t w i t h r e g a r d t o a n y m a t t e r t o which t h i s Act a p p l i e s t h e p r o v i s i o n s of t h i s A c t shall p r e v a i l . ( 2 ) A g a s c o m p a n y , w h e t h e r o p e r a t i n g u n d e r t h e p r o v i s i o n s of a special A c t o r o t h e r w i s e , shall be d e e m e d t o be a u t h o r i s e d to do a n y act o r t h i n g n e c e s s a r y f o r m a n u f a c t u r i n g or s u p p l y i n g g a s in a c c o r d a n c e w i t h t h e r e q u i r e m e n t s of t h i s A c t . (3) T h e G o v e r n o r m a y , by p r o c l a m a t i o n p u b l i s h e d in t h e G a z e t t e , e x e m p t f r o m t h e o p e r a t i o n of such p r o visions of t h i s A c t a s a r e m e n t i o n e d in t h e p r o c l a m a t i o n , a n d for t h e p e r i o d m e n t i o n e d t h e r e i n , a n y g a s c o m p a n y which is a local a u t h o r i t y o r a n y p e r s o n o p e r a t i n g u n d e r a f r a n c h i s e g r a n t e d u n d e r the L o c a l G o v e r n m e n t A c t , 1 9 1 9 , a s a m e n d e d by s u b s e q u e n t A c t s .
(4) Division One of P a r t I I I of t h i s A c t shall a p p l y only to a g a s c o m p a n y for t h e t i m e b e i n g included i n S c h e d u l e One.
3. I n t h i s Act, unless t h e context o r s u b j e c t - m a t t e r
o t h e r w i s e r e q u i r e s — " B o a r d " m e a n s a b o a r d c o n s t i t u t e d u n d e r t h i s A c t ; ' ' B r i t i s h t h e r m a l u n i t " m e a n s the q u a n t i t y of h e a t r e q u i r e d to r a i s e one p o u n d of w a t e r one d e g r e e F a h r e n h e i t ; " G a s c o m p a n y " m e a n s a n y c o m p a n y , c o r p o r a t i o n , firm o r p e r s o n s u p p l y i n g o r d i s t r i b u t i n g g a s f o r lighting, h e a t i n g , m o t i v e p o w e r , o r o t h e r p u r p o s e , and d i s p o s i n g o f the s a m e w i t h a v i e w t o profit, a n d includes a local a u t h o r i t y , b u t does n o t include a n y p e r s o n or c o r p o r a t i o n a c t i n g on behalf of the C r o w n ;
" G a s u n i t " m o a n s t h r e e t h o u s a n d four h u n d r e d a n d twelve B r i t i s h t h e r m a l u n i t s g r o s s ;
" L o c a l a u t h o r i t y " m e a n s council of a city, munici p a l i t y o r s h i r e , o r a n u r b a n committee, o r a county council; " P a r t " m e a n s P a r t of t h i s A c t ; " P r e s c r i b e d " m e a n s p r e s c r i b e d by t h i s Act or b y r e g u l a t i o n s m a d e t h e r e u n d e r ; " S c h e d u l e " m e a n s Schedule to t h i s A c t ; " S t a n d a r d p r i c e " m e a n s , in r e l a t i o n to g a s supplied by a c o m p a n y m e n t i o n e d in Schedule One, t h e a p p r o p r i a t e price f o r the time b e i n g set oppo site the n a m e of t h a t c o m p a n y in t h a t Schedule.
DIVISION 2.—Repeal and savings.
4. (1) T h e Gas a n d E l e c t r i c i t y Act, 1932, is h e r e b y
r e p e a l e d .
(2) All r e g u l a t i o n s m a d e u n d e r the G a s Act, 1912, which a r e in force a t the commencement of t h i s Act shall, so f a r a s t h e y a r e not i n c o n s i s t e n t w i t h t h i s Act, con t i n u e in force u n t i l r e p e a l e d or r e p l a c e d by r e g u l a t i o n s m a d e u n d e r t h i s Act.
I n the c o n s t r u c t i o n of such r e g u l a t i o n s , a reference to a b o a r d shall be c o n s t r u e d as a r e f e r e n c e to a b o a r d c o n s t i t u t e d u n d e r this Act.
(3) A p e r s o n a p p o i n t e d to the office of g a s e x a m i n e r u n d e r the p r o v i s i o n s of the G a s Act, 1912, or the Gas a n d E l e c t r i c i t y Act, 1932, a n d h o l d i n g such office a t t h e c o m m e n c e m e n t of t h i s Act, shall continue in office in t h e game m a n n e r a s if he h a d been a p p o i n t e d u n d e r t h i s A c t .
(4) T h e r i g h t s , p o w e r s a n d obligations of a g a s c o m p a n y a s e x i s t i n g at the d a t e of t h e c o m m e n c e m e n t of t h i s Act in r e s p e c t of a n y m a t t e r o r t h i n g which u n d e r t h i s A c t m a y be dealt w i t h b y a b o a r d , shall continue in full force a n d effect until v a r i e d u n d e r t h e p r o v i s i o n s of t h i s Act.
(5) T h e p e r s o n who, i m m e d i a t e l y before t h e com m e n c e m e n t of t h i s Act, holds office a s C o m m i s s i o n e r f o r G a s a n d E l e c t r i c i t y u n d e r the G a s a n d E l e c t r i c i t y Act, 1932, shall, on such commencement, cease t o hold such office, b u t shall be eligible, on the r e c o m m e n d a t i o n of the P u b l i c Service B o a r d , to be a p p o i n t e d to some office in t h e P u b l i c Service c o r r e s p o n d i n g in classification a n d s a l a r y to t h a t which he held a t t h e d a t e of h i s a p p o i n t m e n t a s C o m m i s s i o n e r , a n d if he is not so r e c o m m e n d e d a n d a p p o i n t e d w i t h i n t h r e e m o n t h s a f t e r the commence m e n t of this Act, a n d if w i t h i n such p e r i o d of t h r e e m o n t h s he shall n o t h a v e been a p p o i n t e d by t h e G o v e r n m e n t to an office w i t h a s a l a r y n o t less t h a n t h e s a i d s a l a r y , he shall receive such c o m p e n s a t i o n a s h e would h a v e been entitled to h a d his services been d i s p e n s e d with a t the c o m m e n c e m e n t of t h i s Act o t h e r w i s e t h a n a c c o r d i n g to law.
T h e p r o v i s i o n s of t h e P u b l i c Service Act, 1902, a s a m e n d e d by s u b s e q u e n t A c t s , a n d of a n y r e g u l a t i o n m a d e t h e r e u n d e r , c o n f e r r i n g r i g h t s a n d p r i v i l e g e s in r e s p e c t of leave of absence on a n officer of t h e P u b l i c S e r v i c e shall be deemed to h a v e a p p l i e d to a n d in r e s p e c t of t h e C o m m i s s i o n e r to the s a m e extent a s if he h a d c o n t i n u e d to hold the office in t h e P u b l i c Service held b y h i m imme d i a t e l y before his a p p o i n t m e n t a s C o m m i s s i o n e r , a n d a n y leave b y w a y of o r d i n a r y leave a c c r u e d to h i m a n d n o t t a k e n a t the commencement of t h i s Act shall be a d d e d
to the leave to which he is entitled u n d e r section t h i r t e e n of t h e P u b l i c Service ( A m e n d m e n t ) Act, 1919, as a m e n d e d by s u b s e q u e n t A c t s .
I n t h e event of his n o t being a p p o i n t e d to t h e P u b l i c Service, t h e n , for the p u r p o s e s of sections 13A a n d four teen of the P u b l i c S e r v i c e ( A m e n d m e n t ) A c t , 1919, a s a m e n d e d by s u b s e q u e n t A c t s —
( a ) the t e r m i n a t i o n of his office a s C o m m i s s i o n e r b y t h e o p e r a t i o n of t h i s Act shall be d e e m e d t o be a r e t i r e m e n t f r o m t h e P u b l i c Service u n d e r the p r o v i s i o n s of section sixty-seven of t h e P u b l i c Service Act, 1902;
( b ) the money value of leave not t a k e n by h i m shall be c o m p u t e d a t t h e r a t e of s a l a r y received by h i m a s C o m m i s s i o n e r i m m e d i a t e l y before t h e commencement of t h i s Act. P A R T I I . BOARDS OF I N Q U I R Y . 5. (1) T h e G o v e r n o r m a y f r o m time to time a p p o i n t a b o a r d for t h e p u r p o s e s of t h i s Act.
(2) A b o a r d shall consist of t h r e e m e m b e r s , one to b e n o m i n a t e d by the M i n i s t e r , one to be n o m i n a t e d b y the g a s c o m p a n y or g a s c o m p a n i e s concerned in t h e subject-m a t t e r of t h e i n q u i r y to be held b y t h a t b o a r d , a n d a t h i r d m e m b e r who shall be c h a i r m a n , a n d shall be a p e r s o n a g r e e d u p o n between the M i n i s t e r a n d such c o m p a n y or c o m p a n i e s .
I n t h e event of t h e M i n i s t e r a n d t h e c o m p a n y or c o m p a n i e s failing to a g r e e a s to the t h i r d m e m b e r , such t h i r d m e m b e r shall be a p e r s o n n o m i n a t e d by the Chief J u s t i c e of N e w S o u t h Wales.
(3) If no p e r s o n , or no p e r s o n able or willing to act a s a m e m b e r of the b o a r d , is within the time p r e s c r i b e d n o m i n a t e d b y the c o m p a n y or c o m p a n i e s concerned, the M i n i s t e r m a y a p p o i n t a n y p e r s o n to r e p r e s e n t the c o m p a n y or c o m p a n i e s a s a m e m b e r of such b o a r d .
(4) F o r the p u r p o s e s of a n y i n q u i r y by a b o a r d , t h e c h a i r m a n shall h a v e the p o w e r s , r i g h t s , privileges, p r o t e c t i o n a n d i m m u n i t i e s of a c h a i r m a n of a R o y a l C o m m i s s i o n within the m e a n i n g of Division One of P a r t I I of t h e R o y a l C o m m i s s i o n s Act, 1923-1934, a n d a m e m b e r or a b o a r d shall h a v e the p o w e r s , r i g h t s , p r i v i l e g e s , p r o t e c t i o n a n d i m m u n i t i e s of a c o m m i s s i o n e r w i t h i n the m e a n i n g of t h a t Division.
(5) T h e p r o v i s i o n s of the R o y a l Commissions Act, 1923-1934, w i t h t h e exception of section t h i r t e e n a n d D i v i s i o n T w o of P a r t I I , shall a p p l y to a n d w i t h r e s p e c t t o any i n q u i r y by the b o a r d .
(6) A n y two m e m b e r s of a b o a r d shall be a q u o r u m a n d shall h a v e t h e p o w e r s a n d a u t h o r i t i e s by t h i s Act c o n f e r r e d u p o n a b o a r d , p r o v i d e d t h a t if a t a n y m e e t i n g of a b o a r d t h e c h a i r m a n is n o t p r e s e n t a n d t h e m e m b e r s p r e s e n t differ in opinion u p o n a n y m a t t e r t h e d e t e r m i n a t i o n of such m a t t e r shall be p o s t p o n e d u n t i l such t i m e a s t h e c h a i r m a n shall be p r e s e n t .
(7) No act, d e t e r m i n a t i o n o r p r o c e e d i n g of a b o a r d shall be invalid m e r e l y because a t t h e time of t h e act, d e t e r m i n a t i o n or p r o c e e d i n g t h e r e is a v a c a n c y in t h e office of a m e m b e r of the b o a r d .
(8) T h e c h a i r m a n shall h a v e a d e l i b e r a t i v e v o t e , a n d in the case of a n equal division of v o t e s a c a s t i n g vote.
( 9 ) I n the case of illness o r absence of a m e m b e r , t h e a u t h o r i t y which n o m i n a t e d such m e m b e r m a y n o m i n a t e a d e p u t y t o act for such m e m b e r d u r i n g h i s illness or absence, a n d such d e p u t y whilst so a c t i n g shall b e deemed to be a m e m b e r of the b o a r d .
(10) T h e costs of a n d i n c i d e n t a l t o a n i n q u i r y , i n c l u d i n g t h e fees of t h e m e m b e r s , shall be p a i d b y t h e p a r t i e s t o t h e i n q u i r y in such p r o p o r t i o n s a s t h e b o a r d m a y direct.
(11) No action or suit shall be b r o u g h t o r m a i n t a i n e d a g a i n s t a n y p e r s o n w h o is, o r a t a n y t i m e h a s been, a m e m b e r of a b o a r d , for a n y t h i n g done o r o m i t t e d b y h i m p u r s u a n t to the d u t i e s i m p o s e d u p o n h i m by t h i s A c t .
P A R T I I I .
REGULATION OF GAS C O M P A N I E S .
D I V I S I O N
1.—Special
provisions applicable to companies mentioned in Schedule One.6. (1) T h e profits of a g a s c o m p a n y a v a i l a b l e f o r dis
t r i b u t i o n a m o n g the h o l d e r s of i t s s h a r e c a p i t a l in a n y y e a r shall n o t exceed the following r a t e s (in t h i s A c t r e f e r r e d to as t h e s t a n d a r d r a t e s of d i v i d e n d ) , t h a t is t o s a y -on t h e o r d i n a r y s h a r e c a p i t a l of the c o m p a n y — t h e r a t e of six p o u n d s in r e s p e c t of e v e r y one h u n d r e d p o u n d s a c t u a l l y p a i d u p o r i s s u e d a s p a i d u p of such c a p i t a l ; a n d on t h e p r e f e r e n c e c a p i t a l of the c o m p a n y — t h e r a t e of five p o u n d s t e n shillings in r e s p e c t of e v e r y one h u n d r e d p o u n d s a c t u a l l y p a i d u p or issued a s p a i d u p of such c a p i t a l . (2) S h o u l d a g a s c o m p a n y o t h e r t h a n t h e f o u r c o m p a n i e s firstly m e n t i o n e d in Schedule One be u n a b l e to o b t a i n s h a r e c a p i t a l a t p a r , t h e s t a n d a r d r a t e s of divi d e n d on such c a p i t a l m a y , w i t h t h e a p p r o v a l of t h e M i n i s t e r a n d u p o n r e c o m m e n d a t i o n by a b o a r d be i n c r e a s e d a n d such i n c r e a s e d r a t e s shall be t h e s t a n d a r d r a t e s of dividend on such c a p i t a l . 7. (1) T h e d i r e c t o r s of a g a s c o m p a n y m a y , if they t h i n k fit, in a n y y e a r , t r a n s f e r o u t of the r e v e n u e of t h e c o m p a n y a s p a r t of the e x p e n d i t u r e on r e v e n u e account, a n y s u m n o t exceeding a n a m o u n t equal to one-half of one p e r c e n t u m of the a g g r e g a t e of the s h a r e c a p i t a l (inclusive of p r e m i u m s ) a n d t h e loan c a p i t a l a s defined b y r e g u l a t i o n t o a n account to be called " t h e special p u r p o s e s a c c o u n t . "
(2) T h e special p u r p o s e s account shall be a p p l i cable only t o m e e t — ( a ) expenses i n c u r r e d by r e a s o n of accidents, i n d u s t r i a l d i s p u t e s a n d o t h e r c i r c u m s t a n c e s which d u e c a r e a n d m a n a g e m e n t could n o t h a v e p r e v e n t e d ; (b) e x p e n s e s i n c u r r e d in t h e r e m o v a l of p l a n t o r w o r k s . (3)
(3) T h e m a x i m u m a m o u n t s t a n d i n g to the c r e d i t of the special p u r p o s e s account shall not, a t a n y time, exceed a n a m o u n t e q u a l to o n e - t w e n t i e t h p a r t of the a g g r e g a t e of t h e s h a r e a n d l o a n c a p i t a l of the c o m p a n y a s p r e s c r i b e d in subsection one of t h i s section.
(4) So long a s t h e r e is a n y balance r e m a i n i n g i n t h e special p u r p o s e s account, a n y e x p e n s e s of t h e n a t u r e r e f e r r e d to in subsection two of t h i s section shall be c h a r g e d a g a i n s t such account.
8. T h e d i r e c t o r s of a g a s c o m p a n y m a y , if t h e y t h i n k fit, in a n y y e a r , c h a r g e a g a i n s t t h e r e v e n u e of the c o m p a n y a s p a r t of the e x p e n d i t u r e on r e v e n u e account, a n y s u m n o t exceeding a n a m o u n t equal to t h r e e p e r c e n t u m of the book v a l u e s ( a f t e r d e d u c t i n g d e p r e c i a t i o n or allowing f o r a n y a m o u n t in the d e p r e c i a t i o n r e s e r v e a s t h e case m a y r e q u i r e ) of t h e m a n u f a c t u r i n g a n d d i s t r i b u t i n g p l a n t , b u i l d i n g s , a n d e q u i p m e n t of the c o m p a n y calculated on t h e a v e r a g e m o n t h l y balances of such book v a l u e s t h r o u g h o u t t h e y e a r , a n d a n y s u m so c h a r g e d shall be a p p l i e d in w r i t i n g down such book v a l u e s or be c a r r i e d to a d e p r e c i a t i o n r e s e r v e .
9. T h e a m o u n t s t a n d i n g to t h e c r e d i t of t h e special
p u r p o s e s a n d d e p r e c i a t i o n fund of a g a s c o m p a n y a t t h e c o m m e n c e m e n t of t h i s Act m a y be allocated between the special p u r p o s e s account a n d the w r i t i n g down of t h e book v a l u e s of the c o m p a n y ' s a s s e t s o r t h e t r a n s f e r to a d e p r e c i a t i o n r e s e r v e in such p r o p o r t i o n s a s the d i r e c t o r s m a y decide, but not less t h a n one-seventh p a r t of such a m o u n t shall be allocated to the special p u r p o s e s account.
10. (1) W h e r e the a v e r a g e p r i c e p e r g a s u n i t c h a r g e d
b y a g a s c o m p a n y for all g a s sold by it d u r i n g a n y y e a r shall h a v e been six o n e - t h o u s a n d t h s of a p e n n y o r m o r e below t h e a v e r a g e s t a n d a r d price p e r g a s u n i t applicable to t h a t c o m p a n y t h e d i r e c t o r s of the c o m p a n y m a y , out of t h e profits, set a p a r t such a m o u n t as t h e y t h i n k fit b y w a y of a g e n e r a l r e s e r v e .
T h e a m o u n t so set a p a r t shall not exceed t h e s u m a s c e r t a i n e d b y m u l t i p l y i n g the total n u m b e r of g a s u n i t s sold
b y the c o m p a n y d u r i n g the y e a r b y t h e difference between t h e a v e r a g e s t a n d a r d p r i c e p e r g a s u n i t a n d the a v e r a g e p r i c e p e r g a s unit.
I n t h i s subsection—
" T h e a v e r a g e price p e r g a s u n i t " m e a n s the sum a s c e r t a i n e d by d i v i d i n g the t o t a l sum c h a r g e d by the c o m p a n y for all g a s sold b y it d u r i n g t h e y e a r , by the t o t a l n u m b e r of g a s u n i t s so s o l d ; ' T h e a v e r a g e s t a n d a r d p r i c e p e r g a s u n i t " m e a n s
the s u m a s c e r t a i n e d by d i v i d i n g the t o t a l sum which the c o m p a n y would h a v e c h a r g e d f o r all g a s sold by it d u r i n g the y e a r if it h a d c h a r g e d the s t a n d a r d price t h e r e f o r , by the t o t a l n u m b e r of g a s u n i t s so sold.
( 2 ) All a m o u n t s so set a p a r t m a y be invested in G o v e r n m e n t or o t h e r securities n o t connected w i t h t h e business of the c o m p a n y a n d the d i v i d e n d s a n d i n t e r e s t a r i s i n g from such securities m a y be i n v e s t e d in the s a m e or like securities in o r d e r t h a t the a m o u n t s m a y accumu late a t compound i n t e r e s t .
(3) T h e g e n e r a l r e s e r v e so f o r m e d m a y be a p p l i e d to the p a y m e n t of d i v i d e n d s in a n y y e a r in which the profits of the c o m p a n y a r e insufficient to enable it to p a y the s t a n d a r d r a t e s of dividend.
11. ( 1 ) S a v e a s a u t h o r i s e d in t h i s P a r t no sum shall
in a n y y e a r be t r a n s f e r r e d f r o m r e v e n u e by a g a s c o m p a n y to a n y r e s e r v e , fund, or account.
( 2 ) Subject to t h i s section t h e profits of a g a s c o m p a n y shall n o t be utilised o t h e r w i s e t h a n to p a y d i v i d e n d s , a n d to p r o v i d e a g e n e r a l r e s e r v e a n d a sus p e n s e o r r e s e r v e account to i n a u g u r a t e a s u p e r a n n u a t i o n fund in accordance w i t h t h i s Act.
(3) If the clear profits of a c o m p a n y in a n y y e a r , a f t e r p r o v i d i n g for all expenses p r o p e r l y c h a r g e a b l e t o r e v e n u e , i n t e r e s t p a y a b l e on loans, a n d a n y t r a n s f e r s t o a n y r e s e r v e , fund, or account a u t h o r i s e d b y t h i s P a r t , a m o u n t to a l a r g e r s u m t h a n is sufficient to p a y t h e s t a n d a r d r a t e s of dividend, t h e excess m a y be c a r r i e d f o r w a r d in the profit a n d loss a c c o u n t ; b u t the b a l a n c e
r e m a i n i n g in t h e profit a n d loss account a f t e r allowing f o r p a y m e n t of a c c r u e d d i v i d e n d s shall n o t a t a n y t i m e exceed t h e a m o u n t r e q u i r e d to p a y one y e a r ' s d i v i d e n d a t t h e s t a n d a r d r a t e s .
(4) A g a s c o m p a n y which c o n t r a v e n e s a n y p r o vision of t h i s section shall be liable on s u m m a r y convic t i o n to a p e n a l t y n o t exceeding one h u n d r e d p o u n d s , a n d a f u r t h e r p e n a l t y n o t exceeding fifty p o u n d s f o r e v e r y d a y on which, a f t e r such conviction, t h e c o n t r a v e n t i o n c o n t i n u e s . 12. ( 1 ) A g a s c o m p a n y shall n o t c h a r g e for g a s s u p plied b y m e t e r a p r i c e exceeding t h e a p p r o p r i a t e s t a n d a r d p r i c e applicable to t h a t c o m p a n y . (2) ( a ) T h e M i n i s t e r shall, a t t h e r e q u e s t in w r i t i n g of a g a s c o m p a n y , a n d m a y a t a n y t i m e of h i s own m o t i o n , c o n s t i t u t e a b o a r d to i n q u i r e w h a t p r i c e o r p r i c e s of g a s would, if c h a r g e d b y a c o m p a n y , a n d , h a v i n g r e g a r d to all its o t h e r r e v e n u e , enable t h a t com p a n y to p a y t h e s t a n d a r d r a t e s of d i v i d e n d a f t e r m a k i n g p r o v i s i o n for— (i) i n t e r e s t p a y a b l e on l o a n s ; (ii) e x p e n s e s u n d e r t h e p r e s c r i b e d h e a d i n g s p r o p e r l y c h a r g e a b l e to r e v e n u e , including— ( a ) t h e m a x i m u m a m o u n t which m a y be t r a n s f e r r e d t o t h e special p u r p o s e s account in a c c o r d a n c e w i t h section seven of t h i s A c t ;
(b) t h e m a x i m u m a m o u n t which m a y be c h a r g e d f o r d e p r e c i a t i o n in a c c o r d a n c e w i t h section e i g h t of t h i s A c t ; a n d
(iii) a r e a s o n a b l e s u m for c o n t i n g e n c i e s which s h a l l n o t exceed t h e a m o u n t n e c e s s a r y to p a y one half-y e a r ' s d i v i d e n d a t t h e s t a n d a r d r a t e s . (b) T h e b o a r d shall d e t e r m i n e a n d certify such p r i c e or p r i c e s to t h e M i n i s t e r , a n d w h e r e such p r i c e or p r i c e s differ f r o m t h e p r i c e or p r i c e s s e t o p p o s i t e t h e n a m e of t h e c o m p a n y in Schedule One, t h e G o v e r n o r m a y b y p r o c l a m a t i o n p u b l i s h e d in t h e G a z e t t e a m e n d S c h e d u l e One b y s u b s t i t u t i n g for t h e p r i c e or p r i c e s t h e n set o p p o s i t e t h e n a m e of t h e c o m p a n y t h e p r i c e o r p r i c e s so certified b y t h e b o a r d .
(3) U p o n a n y r e p r i n t of t h i s Act Schedule One s h a l l be r e p r i n t e d as a m e n d e d p u r s u a n t t o t h i s or a n y o t h e r section of t h i s Act.
D I V I S I O N 2.—General provisions applicable to gas companies.
13. (1) N o t w i t h s t a n d i n g t h e p r o v i s i o n s of a n y Act or of a n y m e m o r a n d u m or a r t i c l e s of a s s o c i a t i o n t h e issue a f t e r t h e c o m m e n c e m e n t of t h i s Act of a n y s h a r e s in T h e A u s t r a l i a n G a s L i g h t C o m p a n y , the N o r t h S h o r e Gas C o m p a n y L i m i t e d , T h e City of Newcastle G a s a n d Coke C o m p a n y ( L i m i t e d ) or t h e M a n l y Gas C o m p a n y L i m i t e d , shall be subject to t h e following p r o v i s i o n s : —
( a ) all s h a r e s so to be issued shall be offered for sale by public auction or t e n d e r , a n d m a y be sold a t , above or below p a r ;
(b) notice of t h e i n t e n d e d sale shall be given to t h e M i n i s t e r a t l e a s t t w e n t y - e i g h t d a y s before t h e d a y of a u c t i o n o r t h e l a s t d a y for t h e r e c e p t i o n
of t e n d e r s , a s t h e case m a y be, a n d shall be a d v e r t i s e d once in each of two consecutive weeks in one o r m o r e d a i l y n e w s p a p e r s p u b l i s h e d in S y d n e y , a n d in one or m o r e n e w s p a p e r s p u b lished a n d c i r c u l a t i n g in t h e locality in which the c o m p a n y s u p p l i e s g a s ;
(c) a r e s e r v e p r i c e shall be fixed a n d notice thereof shall be sent by t h e c o m p a n y in a sealed l e t t e r to be received by t h e M i n i s t e r not less t h a n t w e n l y - f o u r h o u r s before, but not to be opened u n t i l a f t e r t h e d a y of t h e auction or a f t e r t h e l a s t d a y for the r e c e p t i o n of t e n d e r s a s t h e case m a y b e ;
( d ) n o lot offered for sale shall c o m p r i s e s h a r e s of g r e a t e r n o m i n a l v a l u e t h a n one h u n d r e d p o u n d s ; (e) in t h e case of a sale by t e n d e r no p r e f e r e n c e
shall be. given t o one of two or m o r e p e r s o n s t e n d e r i n g t h e s a m e s u m ;
(f) it shall be one of t h e conditions of sale t h a t t h e t o t a l sum p a y a b l e by the p u r c h a s e r shall be p a i d
to the c o m p a n y on a d a y to be fixed by the com p a n y being within t h r e e m o n t h s a f t e r the d a t e of the a u c t i o n or of the acceptance of the t e n d e r a s t h e case m a y b e ;
(g) a n y s h a r e s or stock which h a v e been so offered for sale a n d a r e n o t sold m a y be offered a t the r e s e r v e price to the h o l d e r s of o r d i n a r y a n d p r e f e r e n c e s h a r e s or stock of the c o m p a n y a n d to the employees of the c o m p a n y a n d to the con s u m e r s of g a s supplied by the c o m p a n y in such p r o p o r t i o n s a s the d i r e c t o r s of the c o m p a n y m a y think fit, or to one or m o r e of these classes of p e r s o n s o n l y :
P r o v i d e d t h a t in the case of an offer to h o l d e r s of s h a r e s or stock, if the a g g r e g a t e a m o u n t of s h a r e s or stock a p p l i e d for exceeds the a g g r e g a t e a m o u n t so offered as a f o r e s a i d , the s a m e shall he allotted to a n d d i s t r i b u t e d a m o n g s t the a p p l i c a n t s as n e a r l y a s m a y be in p r o p o r t i o n to the a m o u n t s a p p l i e d for by t h e m r e s p e c t i v e l y ; (h) a n y s h a r e s or stock which m a y h a v e been offered
for sale in accordance w i t h the f o r e g o i n g p r o visions of t h i s section, a n d a r e not sold, shall be a g a i n offered for sale by public auction or b y t e n d e r in accordance with the p r o v i s i o n s of t h i s section a n d a n y such s h a r e s or stock t h e n r e m a i n i n g unsold m a y be o t h e r w i s e disposed of a t such price a n d in such m a n n e r a s the d i r e c t o r s of the c o m p a n y m a y d e t e r m i n e for t h e p u r p o s e of r e a l i s i n g the best price o b t a i n a b l e ;
(i) a s soon a s possible a f t e r the conclusion of the sale or sales the c o m p a n y shall send a r e p o r t t h e r e o f to the M i n i s t e r , s t a t i n g the t o t a l a m o u n t of the r e s p e c t i v e s h a r e s or stock sold, the t o t a l a m o u n t o b t a i n e d as p r e m i u m (if a n y ) , a n d t h e h i g h e s t a n d lowest p r i c e s o b t a i n e d for the r e s p e c t i v e s h a r e s or s t o c k ;
(,i) the a m o u n t of p r e m i u m shall in all cases be t r e a t e d a s non-dividend b e a r i n g .
(2) I n t h i s section " s h a r e s " includes o r d i n a r y a n d p r e f e r e n c e s h a r e s .
14. (1) Subject to the p r o v i s i o n s of this Act, the
M i n i s t e r shall, at the r e q u e s t in w r i t i n g of a g a s c o m p a n y ( o t h e r t h a n a local a u t h o r i t y ) not included in Schedule One, a n d m a y at a n y time of his own motion, c o n s t i t u t e a b o a r d —
( a ) to i n q u i r e w h a t price or p r i c e s of g a s would, if charged by the c o m p a n y , a n d h a v i n g r e g a r d to all its o t h e r r e v e n u e , a n d a f t e r allowing for the c h a r g e s m e n t i o n e d in s u b p a r a g r a p h s ( i ) , (ii) a n d (iii) of p a r a g r a p h ( a ) of subsection two of section twelve of t h i s Act, enable t h e c o m p a n y to p a y d i v i d e n d s a t r a t e s equivalent to the s t a n d a r d r a t e s of dividend r e f e r r e d to in section six of this A c t ; or (b) to i n q u i r e i n t o a n d r e p o r t a s to w h e t h e r the price or p r i c e s of g a s supplied by a specified c o m p a n y should be fixed; or (c) to i n q u i r e into a n d r e p o r t a s to the c i r c u m s t a n c e s of a n y such c o m p a n y a n d w h e t h e r or n o t it should be included in Schedule One or w h e t h e r or n o t it should be r e s t r i c t e d in r e s p e c t of the price or prices of g a s to be c h a r g e d by it, o r w h e t h e r or not it should be a u t h o r i s e d to p a y d i v i d e n d s in excess of the s t a n d a r d r a t e s of d i v i d e n d s ; or (d) to i n q u i r e into a n d r e p o r t upon a n y m a t t e r r e f e r r e d to in this section or a n y q u e s t i o n a r i s i n g t h e r e f r o m . ( 2 ) T h e b o a r d shall m a k e such i n q u i r y a n d shall furnish to the M i n i s t e r a r e p o r t s o t t i n g out its findings.
I n t h e case of an i n q u i r y u n d e r p a r a g r a p h ( a ) of sub section one of this section, the b o a r d shall certify the p r i c e or p r i c e s as d e t e r m i n e d b y it to the Minister. I n the case of a n i n q u i r y u n d e r p a r a g r a p h (c) of t h a t sub section, the b o a r d m a y r e c o m m e n d t h a t the c o m p a n y be included in Schedule One, a n d the G o v e r n o r m a y u p o n such r e c o m m e n d a t i o n by p r o c l a m a t i o n published in the G a z e t t e a m e n d t h a t Schedule b y the a d d i t i o n of the n a m e of the c o m p a n y concerned with the p r i c e or p r i c e s recom m e n d e d by the b o a r d set o p p o s i t e the n a m e of the
(3) A b o a r d shall not be c o n s t i t u t e d by the Min i s t e r of h i s own m o t i o n u n d e r t h i s section unless a n inspection h a s been m a d e a n d a r e p o r t f u r n i s h e d to him on t h e accounts of t h e c o m p a n y concerned p u r s u a n t t o section eighteen of t h i s Act.
( 4 ) W h e r e a b o a r d r e c o m m e n d e d t h a t t h e com p a n y be included in Schedule One, it shall also r e p o r t a s to w h a t c o n s e q u e n t i a l action should be t a k e n b y t h e com p a n y , a n d w i t h o u t l i m i t i n g t h e g e n e r a l i t y of t h i s obliga tion, shall r e c o m m e n d w h a t t r a n s f e r s should be m a d e from a n y e x i s t i n g r e s e r v e fund or a c c o u n t of t h e com p a n y so a s to b r i n g it into c o n f o r m i t y w i t h t h i s Act or t h e r e g u l a t i o n s m a d e t h e r e u n d e r .
U p o n a p p r o v a l by the G o v e r n o r of the r e p o r t t h e c o m p a n y , on b e i n g r e q u i r e d so to do, shall t a k e such a c t i o n a s m a y be n e c e s s a r y for t h e p u r p o s e of g i v i n g effect t h e r e t o .
( 5 ) N o t w i t h s t a n d i n g a n y t h i n g c o n t a i n e d in t h i s Act, a b o a r d c o n s t i t u t e d u n d e r t h i s section m a y d e t e r m i n e a n d certify w h a t p r i c e or prices should be fixed a s t h e p r i c e o r p r i c e s for g a s s u p p l i e d by t h e c o m p a n y a n d m a y r e c o m m e n d t h a t the n a m e of t h e c o m p a n y be not included in Schedule One. U p o n p r o c l a m a t i o n by t h e G o v e r n o r p u b l i s h e d in the Gazette t h e p r i c e or p r i c e s so certified shall be t h e m a x i m u m p r i c e or p r i c e s which m a y be c h a r g e d by t h e c o m p a n y for g a s s u p p l i e d .
( 6 ) W h e r e a b o a r d r e p o r t s t h a t , h a v i n g r e g a r d t o t h e special c i r c u m s t a n c e s of the c o m p a n y , i n c l u d i n g in such c i r c u m s t a n c e s , its obligations i n c u r r e d in r e s p e c t of s h a r e s a l r e a d y issued, t h e c o m p a n y should be included in Schedule One but should n e v e r t h e l e s s be a u t h o r i s e d to p a y for a. specified p e r i o d or p e r i o d s or g e n e r a l l y divi d e n d s a t a r a t e or r a t e s in excess of t h e s t a n d a r d r a t e s r e f e r r e d to in section six of t h i s Act, t h e G o v e r n o r m a y , b y the p r o c l a m a t i o n a m e n d i n g Schedule One by including t h e c o m p a n y t h e r e i n , a u t h o r i s e it for t h e p e r i o d or p e r i o d s specified, or g e n e r a l l y , to p a y d i v i d e n d s a t t h e r a t e or r a t e s specified in the p r o c l a m a t i o n , and, in t h e a p p l i c a t i o n of Division One of t h i s P a r t to the c o m p a n y , t h e r a t e or r a t e s so a u t h o r i s e d for t h e time b e i n g shall be d e e m e d to be t h e s t a n d a r d r a t e s of d i v i d e n d which m a y
A n y such a u t h o r i t y m a y be cancelled, v a r i e d or revoked in like m a n n e r u p o n a like r e p o r t .
15. ( 1 ) Subject to the p r o v i s i o n s of t h i s Act the
M i n i s t e r shall, a t the r e q u e s t in w r i t i n g of a local a u t h o r i t y conducting a t r a d i n g u n d e r t a k i n g for the s u p p l y
of g a s , c o n s t i t u t e a b o a r d to i n q u i r e w h a t p r i c e or p r i c e s of g a s would, if c h a r g e d by the local a u t h o r i t y , h a v i n g r e g a r d to a n y o t h e r r e v e n u e of the u n d e r t a k i n g , enable the local a u t h o r i t y t o —
( a ) p a y all i n t e r e s t on l o a n s lawfully r a i s e d for the p u r p o s e s of the u n d e r t a k i n g ;
(b) p a y all expenses p r o p e r l y c h a r g e a b l e t o r e v e n u e from the u n d e r t a k i n g including a s u m f o r d e p r e c i a t i o n a t such a r a t e u p o n the d e p r e c i a t i n g a s s e t s in use by the local a u t h o r i t y for the p u r pose of the u n d e r t a k i n g a s the b o a r d m a y d e t e r m i n e ;
(c) p r o v i d e a r e a s o n a b l e r e s e r v e for c o n t i n g e n c i e s ; a n d
(d) m a k e such p r o v i s i o n for a n y s i n k i n g fund or r e s e r v e a u t h o r i s e d by law a s t h e b o a r d m a y d e t e r m i n e .
( 2 ) T h e b o a r d shall d e t e r m i n e a n d certify such p r i c e or p r i c e s to t h e M i n i s t e r .
U p o n publication of a p r o c l a m a t i o n of such p r i c e or p r i c e s by the G o v e r n o r in the Gazette, such price or p r i c e s shall be the m a x i m u m price o r p r i c e s which m a y be c h a r g e d by the local a u t h o r i t y for g a s supplied.
16. T h e M i n i s t e r shall, a t the r e q u e s t of a g a s com
p a n y , c o n s t i t u t e a b o a r d to i n q u i r e w h e t h e r the c o m p a n y should be p e r m i t t e d t o — ( a ) r e q u i r e g u a r a n t e e s of a specified a n n u a l s u m or a specified a n n u a l r e v e n u e a s a condition of s u p p l y i n g g a s to a n y district, a r e a or p e r s o n ; or ( b ) m a k e m i n i m u m or service c h a r g e s for g a s supplied by the c o m p a n y ; or
(c) m a k e differential r a t e s for g a s supplied by such c o m p a n y .
T h e b o a r d shall r e p o r t to the M i n i s t e r a n d if the case so r e q u i r e s , certify t h e r a t e s a n d / o r c h a r g e s which in its opinion a r e p r o p e r . T h e M i n i s t e r m a y by w r i t i n g a u t h o r i s e the c o m p a n y to r e q u i r e g u a r a n t e e s or to m a k e m i n i m u m or service c h a r g e s or differential r a t e s a s r e c o m m e n d e d b y t h e b o a r d . 17. (1) A g a s c o m p a n y ( o t h e r t h a n a local a u t h o
r i t y ) shall f o r w a r d to t h e M i n i s t e r on o r before the thirty-first d a y of M a r c h in each y e a r , a n a n n u a l s t a t e m e n t of a c c o u n t s duly a u d i t e d , a n d if a n d when r e q u i r e d by the M i n i s t e r a list of s h a r e h o l d e r s of the c o m p a n y a t the thirty-first d a y of December t h e n n e x t p r e c e d i n g .
T h e s t a t e m e n t a n d list shall be in t h e f o r m a n d c o n t a i n the p a r t i c u l a r s p r e s c r i b e d or a s n e a r t h e r e t o a s cir c u m s t a n c e s will p e r m i t .
I n e v e r y such a n n u a l s t a t e m e n t of accounts the audi t o r shall certify w h e t h e r in his opinion the c o m p a n y h a s c o r r e c t l y a p p o r t i o n e d its e x p e n d i t u r e between c a p i t a l a n d r e v e n u e .
( 2 ) T h e c o m p a n y shall keep copies of such a n n u a l s t a t e m e n t a t its office a n d sell the s a m e to a n y a p p l i c a n t at a price n o t exceeding one shilling for each copy.
( 3 ) A n y g a s c o m p a n y which m a k e s default i n c o m p l y i n g w i t h the p r o v i s i o n s of t h i s section shall be liable to a p e n a l t y not exceeding two p o u n d s for each d a y d u r i n g which such default c o n t i n u e s .
18. (1) T h e A u d i t o r - G e n e r a l shall, at the r e q u e s t of the M i n i s t e r , e i t h e r p e r s o n a l l y or by a p e r s o n a p p o i n t e d b y h i m , a u d i t or inspect the a c c o u n t s of a g a s c o m p a n y a n d r e p o r t to the M i n i s t e r t h e r e u p o n . T h e M i n i s t e r m a y a p p o i n t a p e r s o n who is a public a c c o u n t a n t , an i n s p e c t o r of local g o v e r n m e n t accounts or the h o l d e r of a n a u d i t o r ' s certificate p r e s c r i b e d by or u n d e r the Local G o v e r n m e n t Act, 1919, a s a m e n d e d by s u b s e q u e n t Acts, to a u d i t o r inspect the accounts of a g a s c o m p a n y a n d r e p o r t to him t h e r e u p o n .
(2) F o r the p u r p o s e of a n y such a u d i t , i n s p e c t i o n o r r e p o r t the A u d i t o r - G e n e r a l or the p e r s o n a p p o i n t e d b y h i m or by the M i n i s t e r , shall h a v e access to all books, accounts, d o c u m e n t s , w r i t i n g , p a p e r s or i n s t r u m e n t s in t h e possession or u n d e r the control of the c o m p a n y , which r e l a t e to t h e accounts of the company.
(3) A n y p e r s o n who o b s t r u c t s the A u d i t o r - G e n e r a l or t h e p e r s o n a p p o i n t e d by him or b y the M i n i s t e r in t h e p e r f o r m a n c e of his d u t i e s u n d e r t h i s section, or w h o w i t h o u t lawful excuse refuses to p r o d u c e a n y such book, account, document, w r i t i n g , p a p e r or i n s t r u m e n t , or to a n s w e r a n y q u e s t i o n asked by the A u d i t o r - G e n e r a l o r such a p e r s o n in the p e r f o r m a n c e of such d u t i e s , shall be liable u p o n s u m m a r y conviction to a p e n a l t y not exceeding t w e n t y p o u n d s , a n d w h e r e such a p e r s o n , a f t e r conviction for such a n offence, still refuses to p r o d u c e a n y such book, account, document, w r i t i n g , p a p e r o r i n s t r u m e n t , or to a n s w e r such a question, he shall be liable u p o n s u m m a r y conviction to a f u r t h e r p e n a l t y not exceeding t w e n t y p o u n d s for each d a y d u r i n g which such refusal continues.
19. W h e r e a p e r s o n is r e q u i r e d by a g a s c o m p a n y to
give s e c u r i t y for a s u p p l y of g a s or for t h e p a y m e n t of t h e r e n t a l of a m e t e r or a n y a p p a r a t u s w h a t s o e v e r , a n d such s e c u r i t y is in the f o r m of a d e p o s i t of cash or the equivalent of cash, such c o m p a n y shall, in accordance w i t h the r e g u l a t i o n s , p a y i n t e r e s t t h e r e o n to such p e r s o n a t t h e r a t e p a y a b l e for the time being by the Common w e a l t h S a v i n g s B a n k of A u s t r a l i a upon a s a v i n g s bank d e p o s i t of a like a m o u n t . 20. (1) N o w i t h s t a n d i n g the p r o v i s i o n s of a n y Act, a g a s c o m p a n y m a y — ( a ) r a i s e such a d d i t i o n a l c a p i t a l as m a y be n e c e s s a r y by the c r e a t i o n a n d issue of o r d i n a r y s h a r e s or stock, or p r e f e r e n c e s h a r e s o r stock, or wholly or p a r t i a l l y by one or m o r e of those modes r e s p e c t i v e l y ;
(b) r a i s e or b o r r o w m o n e y a n d secure the p a y m e n t o r r e p a y m e n t of such m o n e y in such m a n n e r a n d upon such t e r m s a n d conditions in all r e s p e c t s a s t h e s a i d c o m p a n y in g e n e r a l m e e t i n g or t h e d i r e c t o r s m a y d e t e r m i n e ; a n y s e c u r i t y given in r e s p e c t of a n y such m o n e y shall unless o t h e r w i s e p r o v i d e d by the articles of a s s o c i a t i o n (if a n y ) of such c o m p a n y be u n d e r t h e h a n d s of a n y t w o of t h e d i r e c t o r s a n d the s e c r e t a r y f o r t h e time b e i n g of the c o m p a n y , a n d shall be in such form, a n d shall c o n t a i n such p r o v i s i o n s , a s t h e direc t o r s m a y d e c i d e ; a n d
(c) consolidate a n d divide all or a n y of t h e s h a r e c a p i t a l of t h e c o m p a n y i n t o s h a r e s of l a r g e r a m o u n t (but n o t exceeding one h u n d r e d p o u n d s a s h a r e ) t h a n t h e e x i s t i n g s h a r e s of t h e com p a n y , or subdivide t h e e x i s t i n g s h a r e s of t h e c o m p a n y , or a n y of them, i n t o s h a r e s of s m a l l e r a m o u n t , b u t so t h a t in the subdivision t h e p r o p o r t i o n between the a m o u n t p a i d a n d the a m o u n t , if any, u n p a i d on each r e d u c e d s h a r e shall be the s a m e as it w a s in the case of the s h a r e f r o m which the r e d u c e d s h a r e is d e r i v e d . ( 2 ) T h i s section shall not a p p l y to a local a u t h o r i t y .
21. (1) W h e r e a g a s c o m p a n y included in Schedule
One d e s i r e s to s u p p l y or d i s t r i b u t e g a s beyond t h e a r e a w i t h i n which it is f o r t h e t i m e b e i n g a u t h o r i s e d so to do, it shall first a p p l y in w r i t i n g f o r the consent of t h e council of the s h i r e or m u n i c i p a l i t y within the b o u n d a r i e s of which it is d e s i r e d so to s u p p l y or d i s t r i b u t e g a s .
( 2 ) U p o n r e q u e s t by the c o m p a n y , t h e M i n i s t e r shall c o n s t i t u t e a b o a r d for the p u r p o s e of i n q u i r i n g i n t o the m a t t e r .
T h e b o a r d shall afford the council a n o p p o r t u n i t y of b e i n g h e a r d , a n d shall t h e r e a f t e r r e c o m m e n d to the M i n i s t e r the a d d i t i o n a l a r e a , if any, w i t h i n which the c o m p a n y should be p e r m i t t e d to s u p p l y or d i s t r i b u t e g a s a s a f o r e s a i d .
T h e b o a r d m a y also r e c o m m e n d w h a t special p r i c e , if a n y , m a y be c h a r g e d by t h e company, h a v i n g r e g a r d to the cost of s u p p l y i n g a n d d i s t r i b u t i n g g a s w i t h i n such a d d i t i o n a l a r e a , a n d w h a t conditions, if a n y , should a t t a c h t o the r i g h t to s u p p l y a n d d i s t r i b u t e g a s within t h a t a r e a .
(3) U p o n publication in the Gazette of a proc l a m a t i o n by the G o v e r n o r i n t h a t behalf t h e company shall be d e e m e d to be a u t h o r i s e d —
( a ) to s u p p l y a n d d i s t r i b u t e g a s within the a r e a a n d subject to t h e conditions, if any, m e n t i o n e d in t h e p r o c l a m a t i o n n o t w i t h s t a n d i n g t h e p r o v i s i o n s of a n y Act, deed of s e t t l e m e n t or m e m o r a n d u m or articles of a s s o c i a t i o n ; a n d
(b) to c h a r g e the special p r i c e , if any, specified in the p r o c l a m a t i o n f o r g a s s u p p l i e d w i t h i n such a d d i t i o n a l a r e a .
2'2. (1) T h e G o v e r n o r m a y , a f t e r a b o a r d c o n s t i t u t e d for t h e p u r p o s e by t h e M i n i s t e r h a s i n q u i r e d a n d r e p o r t e d t h a t such action would be desirable, b y p r o c l a m a t i o n p u b l i s h e d in t h e Gazette, a u t h o r i s e —
( a ) a g r e e m e n t s for t h e p u r c h a s e of t h e a s s e t s a n d u n d e r t a k i n g of a g a s c o m p a n y b y a n o t h e r such c o m p a n y a n d / o r for t h e j o i n t w o r k i n g a n d / o r for t h e a m a l g a m a t i o n of a n y g a s c o m p a n i e s u p o n such conditions as the b o a r d m a y recom mend, including n e c e s s a r y p r o v i s i o n s w i t h r e g a r d to t h e c a p i t a l of the combined c o m p a n y , t h e v e s t i n g of the p r o p e r t y a n d r i g h t s of t h e p u r c h a s e d or a m a l g a m a t e d c o m p a n i e s , a n d o t h e r n e c e s s a r y incidents a n d consequences of p u r chase, a m a l g a m a t i o n , or j o i n t w o r k i n g ; (b) a n y scheme f o r t h e s u p e r a n n u a t i o n of the employees of a g a s c o m p a n y , including the p r o vision to set aside sufficient funds f r o m suspense accounts o r r e s e r v e s to i n a u g u r a t e such a
scheme, a n d the p r o v i s i o n of funds for the s u p p o r t of the s a m e a s a n expense properly; c h a r g e a b l e to r e v e n u e ;
(c) the a m e n d m e n t of a n y s u p e r a n n u a t i o n scheme in o p e r a t i o n a t the c o m m e n c e m e n t of t h i s Act or a u t h o r i s e d u n d e r t h i s section a f t e r such commencement a n d of a n y deed executed to give effect to any such s c h e m e ;
(d) t h e t r a n s f e r b y T h e A u s t r a l i a n Gas L i g h t Com p a n y of such a m o u n t of the fidelity f u n d held b y t h e c o m p a n y to a s u p e r a n n u a t i o n fund a s t h e d i r e c t o r s of the c o m p a n y d e e m u n n e c e s s a r y for the p u r p o s e s of such fidelity fund.
( 2 ) A b o a r d shall be c o n s t i t u t e d b y t h e M i n i s t e r for the p u r p o s e s of p a r a g r a p h (b) o r p a r a g r a p h (c) of subsection one of t h i s section a t the r e q u e s t of t h e com p a n y concerned or of the F e d e r a t e d Gas E m p l o y e e s ' I n d u s t r i a l Union, New S o u t h W a l e s B r a n c h , a n d if the G o v e r n o r in accordance w i t h t h i s section a u t h o r i s e s a n y of the m a t t e r s r e f e r r e d to in e i t h e r of the said p a r a g r a p h s t h e c o m p a n y concerned shall t a k e such s t e p s a s m a y be n e c e s s a r y on its p a r t f o r the p u r p o s e of g i v i n g effect t h e r e t o .
(3) T h i s section shall not a p p l y to a local a u t h o r i t y .
2 2 A . N o t w i t h s t a n d i n g the p r o v i s i o n s of a n y Act, deed of settlement, m e m o r a n d u m or a r t i c l e s of a s s o c i a t i o n , a g a s c o m p a n y m a y as a n e x p e n d i t u r e p r o p e r l y c h a r g e a b l e t o revenue—•
(1) j o i n or become a m e m b e r of a n d subscribe o r give d o n a t i o n s to a n y association, c o r p o r a t i o n or society, f o r m e d or to be formed, the objects or p a r t objects of which a r e : ( a ) t o p r o m o t e a n d develop the g a s i n d u s t r y in its v a r i o u s b r a n c h e s ; (b) to s t i m u l a t e i n v e n t i o n a n d r e s e a r c h in r e s p e c t to t h e g a s i n d u s t r y in its v a r i o u s b r a n c h e s : ( 2 )
( 2 ) give d o n a t i o n s or c o n t r i b u t i o n s to u n i v e r s i t i e s , technical colleges, schools or s i m i l a r i n s t i t u t i o n s for the p u r p o s e of c a r r y i n g out r e s e a r c h or o t h e r activities for t h e a d v a n c e m e n t of knowledge r e l a t i n g to the g a s i n d u s t r y in its v a r i o u s b r a n c h e s , a n d s u p p o r t associations o r o t h e r bodies e n g a g e d in work which will be of benefit to the g a s i n d u s t r y .
P A R T I V . GAS.
DIVISION 1—Standards of heating power, purity and pressure of gas.
23. (1) ( a ) T h e s t a n d a r d of h e a t i n g power of the g a s supplied b y a g a s c o m p a n y shall be not less t h a n five h u n d r e d a n d fifty B r i t i s h t h e r m a l u n i t s g r o s s : P r o v i d e d t h a t if the M i n i s t e r is satisfied t h a t it would be to the a d v a n t a g e of p e r s o n s supplied w i t h g a s by a g a s company he m a y , by notification p u b l i s h e d in the Gazette, v a r y t h e s t a n d a r d of h e a t i n g p o w e r of the g a s to be supplied by such c o m p a n y .
(b) A c o m p a n y s u p p l y i n g or d i s t r i b u t i n g g a s of a s t a n d a r d of h e a t i n g p o w e r which at the commence m e n t of t h i s A c t h a s been d e t e r m i n e d u n d e r the law for the t i m e b e i n g in force m a y m a i n t a i n t h a t s t a n d a r d u n t i l v a r i e d by the M i n i s t e r , a s p r o v i d e d in p a r a g r a p h ( a ) of t h i s subsection. ( 2 ) T h e g a s supplied by a g a s c o m p a n y shall contain no s u l p h u r e t t e d h y d r o g e n . (3) A g a s c o m p a n y shall s u p p l y g a s a t such a p r e s s u r e a s will balance a column of w a t e r not less t h a n two inches in h e i g h t between the h o u r s of five a.m. and nine p.m., a n d a column of w a t e r n o t less t h a n one and one-half inches in h e i g h t between the h o u r s of n i n e p.m. a n d five a.m. a t the m a i n or as n e a r as m a y be to the j u n c t i o n t h e r e w i t h of the service pipe s u p p l y i n g the c o n s u m e r .
(4) A n y t e s t of the h e a t i n g power, p u r i t y a n d p r e s s u r e of g a s shall be m a d e in accordance with the p r o v i s i o n s of Schedule T w o .
(5) A g a s c o m p a n y shall p r o v i d e t h e p r e s c r i b e d a p p a r a t u s for t e s t i n g g a s a t such places (not exceeding t h r e e in n u m b e r ) on its p r e m i s e s or elsewhere a s the M i n i s t e r m a y a p p r o v e , a n d shall at all times keep such a p p a r a t u s in p r o p e r o r d e r a n d r e p a i r .
24. ( 1 ) W h e r e at a n y time the g a s tested at a n y
t e s t i n g place is of less h e a t i n g p o w e r t h a n t h a t p r e scribed, the c o m p a n y s u p p l y i n g such g a s shall be liable u p o n s u m m a r y conviction to a p e n a l t y n o t exceeding t e n p o u n d s if the deficiency exceed two p e r c e n t u m b u t be not m o r e t h a n five p e r centum, a n d not less t h a n t w e n t y -five p o u n d s n o r m o r e t h a n one h u n d r e d p o u n d s if t h e deficiency exceed live p e r centum.
T h e a v e r a g e of the t e s t i n g s m a d e at a t e s t i n g place on a n y two consecutive d a y s shall be deemed to r e p r e s e n t the h e a t i n g p o w e r of the g a s t e s t e d on the first of such d a y s a t such t e s t i n g place. One p e n a l t y only shall be i n c u r r e d by a g a s c o m p a n y in r e s p e c t of defect of h e a t i n g p o w e r on a n y one d a y .
( 2 ) W h e r e at a n y time t h e g a s tested at a n y test i n g place is of less p u r i t y t h a n t h a t p r e s c r i b e d , t h e com p a n y s u p p l y i n g such g a s shall be liable u p o n s u m m a r y conviction to a p e n a l t y not exceeding ton p o u n d s . One p e n a l t y only shall be i n c u r r e d by a g a s c o m p a n y in r e s p e c t of defect of p u r i t y on a n y one day.
(3) W h e r e at a n y time the p r e s s u r e of g a s t e s t e d is less t h a n t h a t p r e s c r i b e d , t h e c o m p a n y s u p p l y i n g such g a s shall be liable u p o n s u m m a r y conviction to a p e n a l t y n o t exceeding ten p o u n d s . One p e n a l t y only shall be i n c u r r e d by a g a s c o m p a n y in r e s p e c t of defect of p r e s s u r e on a n y one d a y .
(4) A p e n a l t y shall not be i n c u r r e d by a g a s com p a n y u n d e r t h i s section if it can be shown t h a t the defect w a s due to c i r c u m s t a n c e s b e y o n d the c o n t r o l of t h e c o m p a n y , or in t h e ease of defect of p r e s s u r e t h a t such defect w a s due to the n e c e s s a r y a n d t e m p o r a r y o p e n i n g or d i s t u r b i n g of t h e c o m p a n y ' s m a i n s .
DIVISION 2.—Gas examiners. 25. (1) T h e G o v e r n o r m a y , u n d e r a n d subject to the p r o v i s i o n s of t h e P u b l i c Service Act, 1902, a s a m e n d e d b y s u b s e q u e n t A c t s , a p p o i n t g a s e x a m i n e r s for the p u r p o s e s of t h i s Act. (2) A g a s e x a m i n e r m a y , a t a n y r e a s o n a b l e h o u r , t e s t in accordance w i t h the p r o v i s i o n s of t h i s Act t h e h e a t i n g p o w e r , p u r i t y a n d p r e s s u r e of the g a s supplied b y a g a s c o m p a n y . R e a s o n a b l e notice of a p r o p o s e d t e s t i n g shall be given to the c o m p a n y concerned a n d a p e r s o n a p p o i n t e d by it m a y be p r e s e n t a t the t e s t i n g .
(3) A g a s e x a m i n e r shall, on the d a y succeeding t h a t on which the t e s t i n g shall h a v e been conducted or a s soon t h e r e a f t e r a s p r a c t i c a b l e , m a k e a n d deliver to the M i n i s t e r a r e p o r t as to t h e r e s u l t s of his t e s t i n g . H e shall also f o r w a r d a copy of t h e r e p o r t to the c o m p a n y .
(4) A g a s c o m p a n y a n d its officers a n d s e r v a n t s shall give to a g a s e x a m i n e r a n d his a s s i s t a n t s access to t h e t e s t i n g places a p p r o v e d in accordance w i t h this Act, a n d shall afford all facilities for the p r o p e r execution of his d u t i e s . A g a s c o m p a n y or its officer or s e r v a n t failing so to do shall be liable u p o n s u m m a r y conviction to a p e n a l t y not exceeding ten p o u n d s .
DIVISION 3.—General and supplemental.
26. N o t w i t h s t a n d i n g a n y t h i n g c o n t a i n e d in a n y Act
o r m e m o r a n d u m or a r t i c l e s of association, a g a s c o m p a n y s h a l l c h a r g e f o r g a s s u p p l i e d by it on the b a s i s of the n u m b e r of g a s u n i t s so supplied.
27. (1) A g a s c o m p a n y shall not give, n o r shall a
p e r s o n t a k e , a s u p p l y of g a s o t h e r w i s e t h a n t h r o u g h a m e t e r s u p p l i e d by the c o m p a n y g i v i n g the s u p p l y .
T h e M i n i s t e r m a y g r a n t e x e m p t i o n from t h e p r o v i s i o n s of t h i s subsection in special c i r c u m s t a n c e s , for such p e r i o d a n d subject to such t e r m s as to c h a r g e s a n d to such con d i t i o n s a s he m a y t h i n k fit.
(2) A m e t e r shall not be s u p p l i e d by a g a s com p a n y f o r t h e p u r p o s e of r e g i s t e r i n g a s u p p l y of g a s unless it h a s been t e s t e d a n d s t a m p e d in the m a n n e r p r e s c r i b e d .
(3) A g a s c o m p a n y or a p e r s o n offending a g a i n s t the p r o v i s i o n s of t h i s section shall, u p o n s u m m a r y conviction, be liable to a p e n a l t y n o t exceeding five p o u n d s .
(4) T h e r e g i s t r a t i o n of a m e t e r s u p p l i e d in accordance w i t h t h i s A c t shall be p r i m a facie evidence of t h e q u a n t i t y of g a s which h a s p a s s e d t h r o u g h the m e t e r .
28. ( 1 ) A p e r s o n d e s i r i n g a s u p p l y of g a s to p r e
mises a b o u n d a r y of which is s i t u a t e d within twenty-five y a r d s of a n y p i p e of a g a s c o m p a n y a u t h o r i s e d to s u p p l y g a s w i t h i n t h e locality shall s e r v e on t h e c o m p a n y a notice specifying the p r e m i s e s in r e s p e c t of which t h e s u p p l y is r e q u i r e d a n d the d a y , n o t b e i n g e a r l i e r t h a n forty-five d a y s f r o m the d a t e of service, u p o n which the s u p p l y is d e s i r e d to commence.
H e shall, if r e q u i r e d b y the c o m p a n y so to do, give a w r i t t e n u n d e r t a k i n g to the c o m p a n y to t a k e a n d p a y for a s u p p l y of g a s for a p e r i o d of a t least twelve m o n t h s , a n d shall if so r e q u i r e d give to the c o m p a n y s e c u r i t y for t h e p a y m e n t of all m o n e y s which m a y become due by h i m in r e s p e c t of the s u p p l y of g a s a n d i n r e s p e c t of such p r o p o r t i o n of the cost of a n y p i p e laid for the p u r p o s e of g i v i n g the s u p p l y a s he m a y be r e q u i r e d to b e a r by subsection t h r e e of t h i s section.
(2) T h e c o m p a n y shall give to such p e r s o n a s u p p l y n o t l a t e r t h a n the d a t e m e n t i o n e d in the said notice a s b e i n g the d a t e u p o n which the s u p p l y is r e q u i r e d t o commence, a n d shall, subject to t h i s Act, continue such s u p p l y :
P r o v i d e d t h a t the c o m p a n y shall not be b o u n d to give or to c o n t i n u e a s u p p l y to a p e r s o n who is i n d e b t e d to it f o r g a s s u p p l i e d or u p o n p r e m i s e s w h e r e t h e p i p e s , fit t i n g s , a p p l i a n c e s o r o t h e r a p p a r a t u s u s e d in connection w i t h the s u p p l y or use of g a s a r e , in the opinion of the c o m p a n y , u n s a f e .
A g a s c o m p a n y which refuses or wilfully neglects t o give or continue a s u p p l y which it is r e q u i r e d to give or continue u n d e r this Act, shall, u p o n s u m m a r y conviction, be liable to a p e n a l t y not exceeding f o r t y shillings in r e s p e c t of each d a y d u r i n g which such r e f u s a l or neglect c o n t i n u e s .
(3) T h e cost of so much of a n y p i p e s a s m a y be l a i d u p o n a n y p r e m i s e s for the p u r p o s e of g i v i n g a s u p p l y t h e r e t o a n d of so much of a n y p i p e s a s m a y be laid for t h a t p u r p o s e for a g r e a t e r d i s t a n c e t h a n t h i r t y feet from a n y p i p e of the c o m p a n y , a l t h o u g h n o t on such p r e m i s e s , shall be b o r n e b y t h e p e r s o n m a k i n g t h e r e q u e s t .
2 9 . (1) A n officer or s e r v a n t of a g a s c o m p a n y d u l y a u t h o r i s e d in t h a t behalf m a y , a t a n y r e a s o n a b l e h o u r , e n t e r a n y p r e m i s e s to which g a s is o r h a s been supplied, or on which a n y p i p e , m e t e r , fitting, a p p l i a n c e or o t h e r a p p a r a t u s h a s been installed for t h e s u p p l y o r use of g a s , a n d m a y inspect a n d t e s t a n y such p i p e , m e t e r , fit t i n g , a p p l i a n c e or o t h e r a p p a r a t u s , affix a seal to a n y such m e t e r or p i p e a n d remove a n y such p i p e , m e t e r , fitting, a p p l i a n c e or o t h e r a p p a r a t u s belonging to t h e c o m p a n y .
(2) A p e r s o n who o b s t r u c t s such officer or ser v a n t in t h e exercise of a n y a u t h o r i t y u n d e r t h i s section shall be liable u p o n s u m m a r y conviction to a p e n a l t y n o t exceeding five p o u n d s .
3 0 . (1) A p e r s o n who wilfully, f r a u d u l e n t l y or by culpable negligence i n j u r e s , or suffers to be i n j u r e d any p i p e , m e t e r , fitting, a p p l i a n c e or o t h e r a p p a r a t u s belong i n g to a g a s c o m p a n y , or a l t e r s t h e index of a n y m e t e r , o r p r e v e n t s a n y m e t e r f r o m d u l y r e g i s t e r i n g the q u a n t i t y of g a s s u p p l i e d or i n t e r f e r e s w i t h a n y m e t e r or w i t h a n y seal affixed to a n y m e t e r o r p i p e ; or fraudulently a b s t r a c t s , causes to be w a s t e d or d i v e r t e d , consumes or u s e s g a s s u p p l i e d by a g a s c o m p a n y shall be g u i l t y of a n offence a n d shall on s u m m a r y conviction be liable to a p e n a l t y n o t exceeding fifty p o u n d s or to i m p r i s o n m e n t for a t e r m not exceeding twelve m o n t h s , a n d shall ( w i t h o u t p r e j u dice to a n y o t h e r r i g h t or r e m e d y for t h e p r o t e c t i o n of t h e g a s c o m p a n y or t h e p u n i s h m e n t of t h e offender), for e v e r y such offence, forfeit a n d p a y to t h e g a s company a s u m not exceeding twenty-five p o u n d s , a n d t h e company m a y , in addition t h e r e t o r e c o v e r t h e a m o u n t of a n y d a m a g e by it s u s t a i n e d .
(2) T h e existence of artificial m e a n s for c a u s i n g such a l t e r a t i o n or p r e v e n t i o n , or for a b s t r a c t i n g , w a s t ing, d i v e r t i n g , consuming, or u s i n g g a s s u p p l i e d by a g a s c o m p a n y W h e n t h e m e t e r , p i p e , fitting, a p p l i a n c e or o t h e r
a p p a r a t u s is u n d e r the c u s t o d y or c o n t r o l of the con sumer, shall be p r i m a facie evidence t h a t such a l t e r a t i o n , p r e v e n t i o n , a b s t r a c t i o n , w a s t e , diversion, c o n s u m p t i o n o r u s e ( a s t h e case m a y b e ) h a s been f r a u d u l e n t l y , know ingly, a n d wilfully c a u s e d b y t h e c o n s u m e r .
3 1 . W h e r e a p e r s o n h a s c o m m i t t e d a n offence a g a i n s t
section t w e n t y - n i n e o r section t h i r t y of t h i s Act, t h e g a s c o m p a n y m a y , u n t i l the m a t t e r complained of h a s been r e m e d i e d b u t no l o n g e r , d i s c o n t i n u e t h e s u p p l y of g a s t o t h e p e r s o n so offending.
3 2 . If a p e r s o n n e g l e c t s to p a y a n y s u m due b y h i m
to a g a s c o m p a n y f o r g a s supplied, t h e c o m p a n y m a y , a f t e r g i v i n g r e a s o n a b l e notice of i t s i n t e n t i o n so to do, d i s c o n t i n u e his s u p p l y of g a s u n t i l such sum, t o g e t h e r w i t h a n y e x p e n s e s of t h e c o m p a n y in d i s c o n t i n u i n g a n d r e c o n n e c t i n g such s u p p l y , a r e fully p a i d , b u t n o l o n g e r .
3 3 . A g a s c o m p a n y m a y h i r e to a n y p e r s o n a p r e p a y
m e n t m e t e r a n d fittings to be u s e d t h e r e w i t h a t such r a t e n o t exceeding seven o n e - h u n d r e d s of one p e n n y f o r each g a s u n i t s u p p l i e d a s m a y , from time to t i m e , be fixed b y the M i n i s t e r .
T h e r a t e shall include t h e s u p p l y , fixing, r e p a i r , m a i n t e n a n c e , i n s p e c t i o n a n d collection of t h e s a i d m e t e r a n d fittings a n d all costs w h a t s o e v e r i n c u r r e d b y the c o m p a n y in connection t h e r e w i t h . 3 4 . (1) N o t w i t h s t a n d i n g the p r o v i s i o n s of t h e Act p a s s e d in the e i g h t h y e a r of the r e i g n of H i s l a t e M a j e s t y K i n g W i l l i a m the F o u r t h , i n t i t u l e d " A n A c t for L i g h t i n g w i t h G a s t h e T o w n of S y d n e y in t h e Colony of N e w S o u t h W a l e s , a n d to enable c e r t a i n p e r s o n s a s s o c i a t e d u n d e r t h e n a m e , style a n d firm of ' T h e A u s t r a l i a n G a s L i g h t C o m p a n y ' to sue a n d be s u e d in t h e n a m e of t h e S e c r e t a r y for the time b e i n g of t h e said C o m p a n y , a n d for o t h e r p u r p o s e s t h e r e i n m e n t i o n e d , " a s a m e n d e d by s u b s e q u e n t A c t s , it shall be lawful for t h e p r o p r i e t o r s of T h e A u s t r a l i a n G a s L i g h t C o m p a n y b y r e s o l u t i o n p a s s e d a t a n y g e n e r a l m e e t i n g of t h e c o m p a n y a n d confirmed a s h e r e i n a f t e r in t h i s subsection p r o v i d e d t o —
( a ) (i) a l t e r the n u m b e r of d i r e c t o r s of the com p a n y , b u t so t h a t the n u m b e r of d i r e c t o r s shall not exceed s e v e n ;
