CODE 18-77
Mr Stone HKD
Reference..
Please Lee over.
19/11
"HICD 286/1
SIR S K TANG'S DONATION
1.
2.
Thank you for your minute of 26 October 1989.
I telephoned Mr Venables at the Charity Commissioners today. He was willing to look at the question of how we should deal with Sir S K Tang's bequest, but he pointed out that, as we have suspected, we will need to get a view from lawyers in Hong Kong about the status of the bequest in the law of Hong Kong. He said that although he could advise and assist on setting up a trust in England and Wales, he was not in a position to give a view on the law of Hong Kong, nor on how the gift might fall to be treated there.
3.
Accordingly, I think we will need to get an opinion from lawyers in Hong Kong on the following points:-
Has a valid trust been created in the law of Hong Kong by Sir S K Tang's donation?
- Assuming a trust has been created, what are the trust purposes? Who are the trustees? What are the trustees' powers?
How could such a trust be transferred to England and Wales? What would be the tax consequences of such a move? Are there any draw backs from a legal point of view?
- If a valid trust has not been created, what is the legal position of the donation? Who owns it and what restrictions are there on the uses to which it can be
put?
- Some money has already been paid out of the proceeds of the donation; what are the consequences of this (a) if a trust has been created, and (b) if no such trust has been created?
The lawyers should also be asked to advise generally on how Sir S K Tang's wishes could best be carried out.
4.
I imagine that lawyers on the staff of the Hong Kong Government will be able to advise on these questions. I think the lawyers should be sent the papers attached to Mr O'Brien's minute to Mr Edwards, together with the note dated 27 July 1989 summarising the history of the
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