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(To accompany Enclosure 1.)
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273
As I understand the scheme the Hongkong Government is to establish a branch registry in Shanghai where all papers may be filed and business done preparatory to the formation of a Company whose head office is to be in China. Such Company I will call a China Company. When the papers are in order the papers will be forwarded to the Registrar of Companies in Hongkong, and the incorporation will take place in due course. The registered office of a Chins Company ought for the present I think to be in Shan hai, it will be possible later on to make provision for such places as Hankow and Tientsin, and all acts to be done by a China Company before or in connection with the registrar of Companies are to be done in the branch registry in Shanghai and not in Hongkong. Thus a complete record of the acts of a China Company is available in China; and if the Hongkong Government wish to have the infomation which is in existence in Shanghai, all papers can be filed in duplicate and one copy can be transmitted to the Registrar in Hong- -kong.
After a careful consideration I have come to the conclusion that the analogy on which we should work is that of England and Scot- -land under the act. The analogy is fairly close; the authority which recognizes or creates a company is one, the Board of Trade in one case, the Governor of Hongkong in the other. The two jurisdictions are entire -ly separate in both cases; the Court to be applied to in the case of English companies i.e. companies registered in England is the High Court of Justice. Of Scotch companies the Court of Session. Here in the case of companies with their registered office in Hongkong the Hongkong Court should be the Court, in the case of China Companies the Supreme Court for China. The main amendments necessary will be the introduction in s.s. 3, 4 & 5 of the Ordinance of a subsection analo-
Subs: 2 of ss. 3. 4ts of the act of sections shalogous to "gous to se 131 and 135 of the Act which are now omitted and the sub- -stitution of the definition of "the Court" in s. 285 of the act for t that of "the Court" in s. 261 of the Ordinance. There may be other consequential amendments. I am very anxious to have your confirmation this proposal as early as possible as the work of drafting the required
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