GHANA PRECISION METALS CORPORATION ACT - 1977 (SMCD 105)

    Section - 4 - Corporation to Conduct Business on Commercial Lines.

    (1) The Corporation shall conduct its affairs in accordance with strict commercial practice, and in particular to ensure that its revenue is sufficient to produce on the fair value of its assets a reasonable return measured by taking its net operating income as a percentage of the fair value of its fixed assets in operation plus an appropriate allowance for its working capital.

    (2) In determining what constitutes a reasonable return, all pertinent economic and financial considerations shall be taken into account, including but not limited to the need for net operating income in an amount sufficient:

    (a) to meet interest payments on borrowings;

    (b) to provide for repayments to be made each year in respect of loans obtained by the Corporation to the extent that such repayments exceed the year's provision for depreciation charged to revenue account;

    (c) to provide a substantial proportion of the funds needed for expanding the Corporation's activities and improving its methods of operation;

    (d) to provide reserves for replacement, expansion or other purposes if and to the extent to which the Board deems it necessary to establish such reserves, and

    (e) to make such payments to the Consolidated Fund from time to time as may be determined under section 18 of this Decree.

    (3) In this section the words "net operating income" means the amount of income remaining after substracting from total operating revenue all charges which in the normal conduct of business are proper to be charged to revenue account, including provision for adequate maintenance and straight line depreciation of assets, but before deducting interest and other charges on borrowings.