322
2.
The signatories of the two Memoranda
urge that, as regards the formation and winding up of such
companies, the jurisdiction of the Hongkong Courts should be
direct and that of the Shanghai Court auxiliary. In order
that full effect may be given to this procedure, it appears to
be necessary that the Hongkong Companies Ordinance should be
applied to China and Corea by Order-in-Council. If this
course is adopted I would also suggest that it may be ad-
-visable to apply the Hongkong Companies Ordinance to Wei-
-hai-wei, in order that British law on this subject may be
uniform along the China Coast.
3.
I agree with Sir Havilland's con-
-tention that "disciplinary powers require to be exercised on
the spot for the sake of good government and in justice to
both the complainants and defenadnts*: but, as is pointed out
in the 2nd. joint-memorandum, individual directors or share-
-holders will naturally be sued in the place where they reside,
while in regard to criminal proceedings against them they
would have to be tried where they committed the offence.
The question of Appellate Jurisdic-
4.
-tion