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to be housed in commercially rented property. A third, more managerially complicated, option would be having part of the operation within the Consulate General with the revenue generating elements, notably the English classes with probably the library because of students needs, in separate commercially rented premises. It should be noted that the English classes alone currently take up about 80% of the Council's premises hence under this option our space requirements within the Consulate-General complex would be small.
STATUS
In essence we would require a status or framework that would allow us to continue to offer our current range of services.
Whilst the Draft Basic Law seemed to allow for our current status in Hong Kong under the Royal Charter to continue post 1997 we are now advised that the Chinese are likely to see the Royal Charter, and the privileges. deriving from it, to be an expression of continuing British sovereignty and hence they will amend the exception provisions under the Adaptation of Laws Exercise. Furthermore, it now seems that the proposed terms of the Land Grant currently being sought for the proposed Consulate-General would preclude activities that are deemed commercial. These will probably include our English Language classes.
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LEGAL ADVISERS VIEW
The British Council is a corporation incorporated by Royal Charter but is also a charity registered in England.
Our Legal Adviser points out that whilst in many countries there may well be laws requiring overseas corporations to register so far, as far as he is aware, the Council has not so registered.
However, from a legal point of view we should comply with local law and in Hong Kong we expect the local law regarding exemption from registration of overseas companies to change. In view of this our Legal Adviser advises that if the Amendment of the exceptions from registration provision takes place then steps should be taken to establish, post 1997, a new legal status.
He wonders whether the Chinese have similar legal provisions to Consular Relations Act 1968 Section 1 (1) Schedule 1 Article 5 (b) which states that Consular functions consist in "furthering the development of commercial, economic, cultural and scientific relations between the sending State and the receiving State ..." If so these combined with an appropriate clause in the terms of the lease of land for the proposed Consulate-General might enable the Council to continue with its full operation, including its English classes, in the new premises.
However, if this option is not open to us then he advises either incorporation under the appropriate ordinance or registration as an overseas company under the company ordinance and, subject to further legal advice that we are seeking, and on the assumption that Hong Kong maintains charity law, registration as a charity with the objects clause sufficiently wide to cover all likely Council activities, not just the English classes.