Section 130
Power of company to pay interest out of capital in certain cases
(2)
For the purposes of subsection (1)—
(a)
the payment shall not be made unless it is authorized by the constitution or by special resolution and is approved by the
Court;
(b)
the payment shall be made only for such period as determined by the Court not exceeding the period of twelve months after the works or buildings have been actually completed or the plant provided;
(c)
the rate of interest or returns shall not exceed five per centum per annum or such other rate as for the time being prescribed;
and
(d)
the payment of the interest or returns shall not operate as a reduction of the amount paid-up on the shares in respect of which it is paid.
(3)
Before approving of any payment under paragraph (2)(a), the
Court may, at the expense of the company—
(a)
appoint a person to inquire and report as to the circumstances of the case; and
(b)
require the company to give security for the payment of the costs of the inquiry.
Companies 157
Subdivision 6
Dividends