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DRAFT HONG KONG COMPANIES ORDINANCE,
138
I talked this over with Fr. Rees Davies to-day, and think that we must support the Hong Kong case so far
as we reasonably can, i.e. so far as their proposals do not entail legislation which would he ultra vires of the Hong Kong legislature.
The Law Officers advised (report of 20th June 1908) that it was not ultra vires for the Legislative Council of Hong Kong to pass Ordinance 16 of 1907 enabling Companies registered under the Hong Kong Companies Ordinance 1865 to keep local registers of their members outside the Colony.e.g. in Shanghai, and Arefore we can contend that sections 35 to 37 of the new Hong Kong Bill, which practically re-enact the above mentioned Ordinance, should he made appli- cable to Companies which carry on business in Shanghai,
The alternative is to establish a register
of Compa ies in Shanghai, but this would be attended by both legal and practical difficulties and would mean a considerable loss of revenue to Hong Kong. The difficulties are indicated in the various memor-
been
anda hich have written by Sir H. De Saumarsz and lir. Rees Davies and his colleagues, and what seems to me to be the chief legal difficulty is mentioned below.
that But while I agree Companies carrying on business wholly or in part in Shanghai can and should continue to be registered in Hong Kong and that the Hong Kong Court should have jurisdiction te wind
them
;