Who was afraid that Companies might subdivide their shares into infinitesimal parts, when the small shares might get into the hands of people & become instruments of gambling?
The Company then asked the Governor in Council for a special law to empower them to reduce their shares from £50 to £16 2/3. That is to subdivide each share into three of £33 - each. They have sought relief by a private Bill, but the Standing Orders have no provision for such measures. The Bill was introduced & carried, the Attorney General voting for it; but the Official Members - who are all Directors of a rival Insurance Company - entered a lengthy protest against this special legislation in favour of one Company only; and suggested that the Company might obtain the same by winding up & reconstituting themselves.
Lord Carnarvon accepted the protest & considered it a special case, not a general measure, such as had been previously brought forward. Sir John Smale opposed it on the same grounds as before in 1876. The Unofficial Members deemed that the question had already been thrown out on its merits and should not be brought in again.
The Chairman of the Insurance Company gives his reasons in a letter to the Governor, stating why they do not endeavour to wind up & reconstitute themselves.
The former asks for further instructions. The simplest course would be to sanction the Special Act. The more natural means to draft the General Law through the Council; but Sir John Smale will absent himself, the Unofficial Members will oppose it, & it will probably not be carried except by the casting vote of the Governor.
Could we not adhere to the former instruction to pass this general Ordinance, but in deference to her Majesty's Instructions, which seem to me to be weighty, mark it in the part relating to the reduction of shares, that they shall not be reducible to a lower amount than a high minimum, say £50 or some other fixed figure in proportion?
4th Jan 1885 - May not, under the HK Companies Ordinance, a Company be formed with £1 shares? and if so, what is the value of the Attorney General's objection at the danger of encouraging gambling?
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