(1) Where any shares in a company are issued for the purpose of raising money to defray the expenses of the construction of any work or building or the provision of any plant which cannot be made profitable for a lengthened period, the company may pay interest on so much of that share capital as is for the time being paid-up, for the period and subject to the conditions and restrictions provided under this section and may charge the same to capital as part of cost of construction of the work or building, or the provision of plant.

(2) The payment of such interest shall be authorised by the articles and sanctioned by a special resolution.

(3) The rate of interest shall in no case exceed such rate as may be prescribed.

(4) The payment of the interest shall not operate as a reduction of the amount paid-up on the shares in respect of which it is paid.

(5) The accounts of the company shall show the share capital on which interest has been paid, the rate at which such interest has been paid and the period for which it has been paid.