GOVERMENT HOUSE HONG KONG.
TUE 25 MAY 93 07:39
PG.04
3.
CONFIDENTIAL
Members will be asked to advise whether
this
recommendation should be approved.
BACKGROUND AND ARGUMENT
i
4.
capacity
The Foreign Corporations Act 1991 ("the U.K. Act")
(at Annex B) was enacted in July 1991 to enable the legal
OF foreign corporations incorporated under the
territories which were not recognized as States by
The effect of the Act was that
laws
the
30
UK to be accepted.
obligations
flowing from
contracts
corporations could be enforced.
principally
response to
entered into by those
We understand it was
aimed at Taiwan and Turkish Cyprus, and was A
concern expressed by the legal profession over
the status of corporations from these territories when
entering
counterparts.
into contractual
relationships
with U.K.
5.
Similar concern has been
profession in Hong Kong Over the
expressed by the legal
status of the growing
number UE
corporations
incorporated
in
"territories not
recognised by the U.K.", such as Taiwan and North Korea.
We feel that commercial realities require the enactment of
CONFIDENTIAL
but have yo