TMI Blog1923 (3) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ess than that of 6 1/4 per cent, at simple interest. The amount' of ₹ 18-8-0 thus earned on each share, is described as the guaranteed rate of interest. Other rules reduce the rate earned in case of withdrawal within seven years. A share-holder has to pay interest on the subscription if not paid within the time prescribed by the rules. The Bund gives loans to the share-holders, divided into ordinary loans and special loans. Occasionally, when there are large amounts not borrowed by the share-holders, they may be invested on fixed or current deposits in outside institutions such as the Public Banks of Madras. The excess of interest earned by the Fund over the expenses of the institutions and the interest earned by the share-holders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be destroyed or even impaired by. their incorporation. Last's case, [Last v. London Assurance Corporation (1885) 10 App.Cas. 438 : 55 L.J.Q.B. 92 : 53 L.T. 634 : 34 W.R. 233 : 50 J.P. 116, was distinguished by Lord Brainwell (P. 396) on the ground that the profits were made and m ant to be made not from its own members but from those it dealt with. There were in that case two bodies--the share-holders arid the assured. In Styles case (1889)14 App.Cas. 381: 59 L.J.Q.B. 291 : 61 L.T. 201 and in the case beforeus the persons dealt with and the participators are identical. To the same effect are Lord Herschell's observation at p. 209 and Lord Macnaughten's at p. 412, where he describes Styles' case; as one Where the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs each of whom invested one of more sums of 100 and (2) borrowers who do not invest but borrow from the Society on shares or fifth parts of shares and pay as. 6d. per share or 6d. per fifth part of a share pet Week to the Fund after the borrowing, this sum being intended to be a discharge of (1) the interest on the loan and (2) the principal. The resemblance, between that case and the present one is on the fact that both the investors and the borrowers participate in the surplus and that the investors are like the share-holders in the present case but the difference consists in the fact that the borrowers are not like the share holders and an investor can never be a borrower. It is obvious that the fact; that, while the investors only wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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