t
1
CO P.T.
closure 2.
Hon. Colonial Secretary,
C
• 515
I attach a copy of an important judgment of
the Chief Justice in relation to the Registration here of Shan- -ghai Companies under our Companies Ordinance. The question arose
in connection with a petition to wind up a Shanghai Company
registered here. The effect of the judgment is that in order te
entitle a foreign company to register here it must be in
reality "carry on" its business in Hongkong.
The question of the right of a foreign
company to register here has never before been challenged as a
matter of law but it has been considered on the question of
policy, and this was discussed in C.S.0. $256/06 on the
question of legislating here on the lines of the Companies (Colonial Register) Act 1883 1.8. to providihat Companies
registered here and carrying on business outside the Colony
may koop local registers of members. The subject was very
fully dealt with at that time by Mr. Justice Gomperta as Acting
Attorney-General and I draw attention to his minute of 12th.
February, 1907.
In regard to that minute you wrote as
follows on 16th. February, 1907 :-
With reged to the question raised in
"paragraph 1 of the Attorney-General's minute as to whether
*this Government should permit the registration in Hongkong
*of Companies with foreign capital and a foreign director-
*-ate I imagine there can be but one answer and that is in
"the affirmative”.
Sir Matthew Nathan confirmed your view in his minute of 11th.
March, 1907. The Companies (Local Registers) Ordinance 1907
was then passed and its preamble reads as follows:-
"Whereas many Companies registered under
'the Companies Ordinance, 1865, carry on business in
"places outside the Colony and dealings in their shares are
frequent -