7
SIR,
I beg most respectfully to offer the following suggestions for your consideration, with regard to Chinese partnership business in Hongkong.
1. The true names of the partners and the number of shares they hold in the business and the name of the Manager or Secretary must be registered at the Registrar General's Office within 30 days after the opening of the shop. A penalty may be imposed on the offender for neglecting to do so.
2. The Secretary of the shop may sign for any absent partner or partners who are resident in the interior of China and who may be prevented from coming to Hong- kong through old age or on account of infirmity or serious illness and also for widows and all those who are under age and hold shares in the business by inheritance. The Secretary or Manager who signs for thein must be held responsible for their act as their lawful attorney and bind himself to either produce them or pay whatever may be the proportion of the liabilities against such absent partners for whom he has signed. should the business fail.
3. Should any partners overdraw or embezzle any money from the shop and abscond, the co-partners must share whatever be the loss occasionel thereby. No partners shall be allowed to make the creditors suffer by closing the shop or cansing the business to be wound up under such circumstances.
4. No shop-keeper shall be allowed to file any petition of bankruptcy or place his business in the hands of a lawyer without first giving notice to the creditors of his intention of so doing, and inviting them to examine his account books so that the creditors may judge as to the true position of his affairs and investigate the accounts. Should any account be suspected or be found to have been "cooked", the creditors shall be at liberty to lay information against the offender, and assist the Government to pro- secute him; in other words, no insolvent shop-keeper shall be allowed to engage any lawyer to file any petition of bankruptcy for him, without having first obtained the general consent of his creditors.
5. Any partners or Secretary who is desirous of withdrawing from the business inust report his intention so to do at the Registrar General's Office, and, in conjunction with his co-partners, give notice to the public by advertising in at least two of the local papers for a period of one month, and his liabilities in respect of the business must be cleared before his withdrawal. Should, however, this requirement be not carried out and his debt not cleared off, he shall be still held liable as a partner and being con- cerned in the business.
6. Should the business become insolvent, the respective partners must make compromise with the creditors and pay their respective liabilities to the best of their meaus and abilities,
7. Excepting public holidays as observed by the Government and Sundays, the register of shop-keeper, etc., shall be open to inspection at all times from 10 a.m. to 3 p.m. every day, on payment of a fee of 25 cents for every search.
8. Should any debtor abscond to the interior beyond the reach of the Court, the Government may assist the creditors to trace him out by moving the Chinese authorities, who may also be requested to co-operate with the creditors to prevail on such abscond ing debtor to settle the debt or make such compromises as will satisfy the creditors.
LAU YAM Cr