Section 108: Subject to any necessary sanction or authority being obtained the

Company in General Meeting may by resolution direct the capitalisation of any undivided profits of the Company not required for payment of any fixed preferential dividend or debenture interest whether standing to the credit of a reserve fund or not and including premiums received on the issue of shares or debentures of the Company and whether in the nature of income or of ascertained accretions to capital, and the Directors shall give effect to such resolution by applying such profits to be so capitalised in paying up either- (a) partly paid shares held by the shareholders who would be entitled to such profits if the same were distributed by way of dividend; or (b) unissued shares or debentures of the Company to be thereupon issued to such shareholders as aforesaid or (so far as such issue shall be impracticable in consequence of the fractions involved) to be sold for the benefit of the shareholders entitled thereto or dealt with by the issue of fractional certificates or otherwise settled at the discretion of the Directors as they think expedient or otherwise by dealing with such sum as directed by such resolution. The Directors may appoint any person to contract with the Company, on behalf of the shareholders entitled to the capitalised profits, for the application thereof in manner aforesaid, and any contract so made shall be binding on all such shareholders and shall where necessary be filed with the Registrar in accordance with the Ordinance, Freetown Hotel Limited Agreement (Ratification) AccouNTS.