3.—(1) The Tendring Hundred Water (No.2) Order 1962(1) shall be amended as follows —
(a)in the proviso to section 29(1) (temporary borrowing) for the words “seventy-five thousand” there shall be substituted the words “two hundred and fifty thousand”;
(b)in section 34(3) (application of Third Schedule) —
(i)in paragraph (f)(i) after the words “of the Company” there shall be inserted the words “and by the insertion after the words “as they think fit” of the words “(not being provisions for liabilities or charges within paragraph 89 of Schedule 4 to the Companies Act 1985(2))””;
(ii)after paragraph (f) there shall be inserted the following paragraph —
“(ff) in subsection (1) of section 77 (which places a limitation on the balance carried forward at the end of the year) in paragraph (a) after the word “dividend” and in paragraph (c) after the word “dividends” there shall be inserted the words “together with the advance corporation tax associated therewith”;”.
(2) Schedule 1 to the Tendring Hundred Water Order 1968(3) (application of and modifications to Third Schedule) shall be amended by inserting in column (2) opposite the application in column (1) of section 57 (discount for prompt payment of water rates) the following —
“In subsection (1) for the word “prompt” there shall be substituted the word “the” and after the word “charges” there shall be inserted the words “or instalments of such rates and charges before they fall due or in consideration of prompt payment after they fall due.””.
(3) The Tendring Hundred Water (Financial Provisions) Order 1975(4) shall be amended as follows —
(a)for section 4 (capital and borrowing powers) there shall be substituted the following section —
“4.—(1) The Company may raise capital by —
(a)the issue of shares;
(b)borrowing on mortgage of the undertaking;
(c) borrowing by the issue of debenture stock.
(2) Any sums to be raised in accordance with subsection (1), when added to —
(a)the sums raised by the issue of existing share capital before the relevant date; and
(b)other amounts raised by borrowing and still outstanding on that date,
shall not exceeed ten million pounds.
(3) Subject to subsection (4), the Company shall take such steps as may be necessary to ensure that the amounts raised as mentioned in paragraphs (b) and (c) of subsection (1) which are at any time outstanding do not exceed twice the aggregate of —
(a)the sums raised by the issue of existing share capital; and
(b)the amount of the Company’s reserves.
(4) With the consent of the Secretary of State, the Company may raise an additional amount, as mentioned in paragraphs (b) and (c) of subsection (1), not exceeding ten per cent. of the total on the relevant date of the sums and amount specified in paragraphs (a) and (b) of subsection (3).
(5) For the purposes of this section —
(a)the amount raised by the issue of share capital or debenture stock is the amount raised after taking into account any premiums or discounts; and
(b)in the case of any share capital or debenture stock issued for a consideration other than cash the nominal value shall be taken to have been the amount raised by that issue.
(6) The Company`s powers of borrowing may be exercised without obtaining a certificate of a justice under section 40 of the Companies Clauses Consolidation Act 1845(5).
(7) Sums to be raised by the Company may be raised by the issue of new ordinary shares or stock or new preference shares or stock or, at the Company`s option, by any of those methods.
(8) In this section —
“the Company`s reserves” means the aggregate of any of the following amounts appearing in the Company`s last audited balance sheet —
any capital reserve;
any sum carried forward in accordance with section 77 of the Third Schedule; and
any amounts standing to the credit of any reserve or contingency fund established and maintained in accordance with section 76 of the Third Schedule.
“the relevant date” means the date on which the Company exercise the powers mentioned in subsection (1).”
(b)in paragraph (a) of the proviso to section 6 (interest on borrowed money) for the words “Prevention of Fraud (Investments) Act 1958(6)” there shall be substituted the words “Company Securities (Insider Dealing) Act 1985(7)”.