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LEGISLATIVE COUNCIL.
No. S. 21. The following Bills were read a first time at a meeting of the Council held on the 29th January, 1920;---
A BILL
Short title.
Interpreta- tion.
Authority
of agent of foreign corporation need not be under seal, unless seal
required by law of
foreign State.
tive application.
INTITULED
An Ordinance to make provision with regard to the execution of instruments under seal by the agents of certain foreign corporations.
Be it enacted by the Governor of Hongkong, with the advice and consent of the Legislative Council thereof, as follows:--
1. This Ordinance may be cited as the Foreign Corporations (Execution of Instruments under Seal) Ordinance, 1920.
2. In this Ordinance :-
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Foreign corporation means any corporate body duly incorporated in accordance with the laws of any foreign state; and
"Foreign State does not include any British
protectorate.
3. The fact that a power of attorney or document of authorisation given to or in favour of the douce of the power or agent of a foreign corporation it under seal shall not, if such power of attorney or document of authorisation is valid as a power of attorney or docu- ment of authorisation in accordance with the laws of the State under which such corporation is incorporated, affect, for any purpose intended to be effected within the Colony, the validity or effect of any instrument under seal executed on behalf of such corporation by such donce of the power or agent, which shall for all such purposes whatsoever be as valid as if such authority had been under seal.
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Retrospec- 4. This Ordinance shall also apply to every instru- ment under scal executed before the commencement of this Ordinance on behalf of any foreign corporation by a donee of a power or an agent of such corporation whose authority was not under seal.
Objects and Reasons.
English law requires that where an agent is to execute an instrument under seal his authority must also be under seal. Certain foreign corporations, e.g., French and Belgian corporations, have no common seal and accordingly they connot comply with this rule. The rule is purely technical now, and this Bill proposes to negative it for foreign corporations incorporated in countries where such an authority need not be under seal. It is made general in order to avoid the necessity for enquiry and proof in each case. It is made retro- spective mainly for the security of leasehold titles in the Colony. The point has only recently been taken here
purchasers.
J. H. KEMY',
Attorney General.