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3. Stated policy |
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The company retains a general reserve to provide sufficient resources to enable the company to continue to fund its publishing activities and a designated funding reserve to provide the income necessary to make donations in support of research. |
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The surplus or deficit on publishing activities is credited to the general reserve each year after first transferring to the research funding reserve an amount equal to the taxation charge that would arise were it not for the company's charitable status. |
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The directors continue to keep under review the level of the company's general reserve and the current level is considered necessary for the following reasons: |
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- to ensure the financial security and the proper staffing of the company. The techniques developed to publish xxxxxxxxx journals as efficiently as possible require a well-trained stable highly skilled workforce with the resources available to adapt new technology and new situations.
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- to provide adequate resources to meet the challenges imposed by the new and uncertain introduction of electronic publishing in which the traditional methods of funding journals through libraries to ensure adequate quality control of content may disappear.
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As indicated above the directors have resolved to take advantage of surpluses currently arising on journal production to build up the company's research funding reserve through the annual transfer of a proportion of each year's surplus. The rationale for holding this designated fund is as follows: |
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- to use income from invested capital to raise funds to support xxxxxxxxxx societies;
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- to fund ................. and to fund ......................
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