Section 26: Minimum return

26. Minimum return.—(1) Where the Federal Government takes over the management of an establishment but does not hold majority portion of shares in a company carrying voting rights, or controlling proprietary interests therein, it shall, on behalf of such establishment, guarantee to the shareholders or proprietors of such establishment a minimum annual rate of return equivalent to two per. cent, above the bank rate. (2) The minimum rate of return referred to in sub­section (1) shall be worked out, in the case of an establishment owned by a company, on the paid up capital of such company, and, in the case of an establishment owned by a person other than a company, on the Net Worth Value of investment as defined in the Schedule on the basis of the figure appearing in the latest annual balance sheet of such establishment.

Effective date: 1973-01-01

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