My Lord,
Government House, 23 JUN 08, Hongkong.
13th December, 1907.
I have the honour to forward for the signification of His Majesty's pleasure an Ordinance entitled "An Ordinance to authorise Companies registered under the Companies Ordinance, 1865, to keep local registers of their members outside the Colony".
The usual report by the Attorney General is annexed.
2. The cause of this legislation is the fact that this Government has never been able to realise more than a fraction of the stamp fees due on the transfer of shares made at places outside the Colony.
3. Under the Companies Ordinance, 1865, Companies registered in Hongkong must keep their registers in the Colony and record all transfers of shares therein, stamp duty being duly paid upon each transaction. It has however been found impossible in practice to enforce these requirements, and it has long been the custom for Companies doing business in the China Treaty Ports, Japan and elsewhere to record transfers of shares in registers kept at their place of business. No stamp duty is paid in respect of these transfers.