No. 317.
273
No. 20
91.
HONGKONG.
DESPATCH RESPECTING SALE OF SHARES IN JOINT STOCK COMPANIES.
Laid before the Legislative Council, by Command of His Excellency the Officer Administering the Government, on the 5th June, 1891.
GOVERNMENT HOUSE,
Enclosure 1.
Enclosure 2.
Enclosure 3.
MY LORD,
HONGKONG, 2nd September, 1890.
I have the honour to inform Your Lordship that at the last meeting of the Legislative Council before the recess a Bill was introduced by Mr. J. J. KESWICK to amend the law in respect of the sale of shares in Companies registered under the Hongkong Companies Ordinances and in other Joint Stock Companies.
2. The Bill was only read a first time as the matter was too important a one to dispose of until it had received the careful attention of Government and until the community in general had been given an opportunity to express an opinion upon it.
3. Mr. KESWICK explained that the object of the proposed Ordinance, which is based on the Imperial Act, 30 Vic. ch. 29, commonly called Leeman's Act, is to do away with what are known as time bargains, ie., contracts to sell for delivery at a future date shares the seller does not possess at the time.
There can be no doubt that there has been of late, more particularly during the course of last year, a great deal of gambling in shares carried on in this Colony which this Ordinance, if passed, would in all probability go far to prevent.
4. The principal, if not the only, objection to the Ordinance is that it would be a restriction on the freedom of contract, but I venture to think that as freedom of contract exists only for the public good, if it is more in the public interest that it should be to some extent restricted there can be no valid objection to the pro- posed change on this ground.
5. But as the measure is one of some importance Mr. KESWICK and the Acting Attorney General, Mr. ACKROYD, expressed a desire that I should submit a copy of it for Your Lordship's consideration before further proceeding with it in the Legislative Council, more especially so as the Council will not meet until the beginning of October.
I therefore enclose a copy of the Bill as also a memorandum in explanation of it which has been drawn up by the Acting Attorney General.
In so far as my own opinion is concerned I cannot but think the measure a desirable one.
I shall be glad to receive Your Lordship's views upon it as soon as possible inasmuch as Mr. KESWICK will naturally be anxious to proceed with the Bill, should it receive Your Lordship's approval, without any unnecessary delay.
6. I forward, for Your Lordship's information, the report, as taken from the Hongkong Daily Press, of the observations that were made when the Bill was introduced by Mr. KESWICK on the 21st of July last.
The Right Honourable
Lord Knutsford, G.C.M.G.
I have the honour to be,
My Lord, Your Lordship's most obedient,
humble Servant,
(Signed),
F. FLEMING.