THE COMPANIES ORDINANCE, 1972

Part IV.—Interpretation of Schedule

28.  For the purposes of this Schedule, unless the context otherwise requires—

(a)   the expression "provision" shall, subject to sub-paragraph (2) of this paragraph, mean any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or retained by way of providing for any known liability of which the amount cannot be determined with substantial accuracy;

(b)   the expression "reserve" shall not, subject as aforesaid, include any amount written off or retained by way of providing for depreciation, renewals or diminution in value of assets, or retained by way of providing for any known liability, or any sum set aside for the purpose of its being used to prevent undue fluctuations in charges for taxation ;                       f

and in this paragraph the expression "liability" shall include all liabilities in respect of expenditure contracted for and all disputed or con-. tingent liabilities.

(2) Where—

(a) any amount written off or retained by way of providing for depreciation, renewals or diininution in value of assets, not being an amount written off in relation to fixed assets before the commencement of this Ordinance ; or

(b) any amount retained by way of providing for any known liability ; is in excess of that which in the opinion of the directors is reasonably necessary for the purpose, the excess shall be treated for the purposes of this Schedule as a reserve and not as a provision.

29.  For the purposes aforesaid, the expression "quoted investment" means an investment as respects which there has been granted a quotation or permision to deal on a stock exchange in Seychelles or on a recognised overseas stock exchange, and the expression "unquoted investment" shall be construed accordingly.

30.  For the purposes aforesaid, the expression "industrial property rights" means patents, trade marks, designs, concessions or grants having a similar operation to patents, trade marks and designs, and inventions, processes and applications of materials which, although not patented, are protected by contractual arrangements, confidential communication or otherwise.

31.  For the purposes aforesaid, a loan shall be deemed to fall due for repayment, and an instalment of a loan shall be deemed to fall due for payment, on the earliest date on which the lender could require repayment or, as the case may be, payment, if he exercised all options and rights available to him.