83

of

the condition

spon

offered which the Bank on such withdrawal, My Lords consent to exercise

My Lords, referring to the establishment of the

Bank of New Zealand in Fiji,

are under the impression

that the power reserved

to them by the 4th section of the Hong Kong

Shanghai Bank Ordinance 1866, and they hereby

authorise the Company to establish a Branch at

Singapore.

The Secretary of State asks whether the Straits

Settlement Bill for the establishment of the Bank in

that Colony may now be proceeded with. It appears,

however, to My Lords that as the Bank derives its

powers of corporate action from the Ordinance of Hong Kong

and as that Ordinance only empowers it to establish a

Bank in Singapore with the assent of the Treasury, it will be proper, in the first instance,

to comply with the requirements of the incorporating

ordinance, and to give the Treasury authority

therein required.

As a Bank incorporated and possessing the necessary

powers under the law of one Colony, may establish

a branch in another Colony, if the general law of

the latter Colony does not forbid it, and if so,

the absence of restrictive Banking legislation in the

Straits Settlement, there would appear to be no absolute

necessity for a Straits Ordinance. If, however,

in this case the Secretary of State would prefer to obtain

the direct assent of the Settlement, there can be no

objection, but the Ordinance must, My Lords think,

recite the conditions upon which the authority of

this Board, as required by the Hong Kong Ordinance,

has been obtained, and it must in other respects

accord with the powers granted under the Hong Kong

Ordinance.

7

On

My

REIGN

me

ar

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